Should I shortsale if I am still going to be sued for deficiency judgement?

[triathlon4life]

What is the name of your state (only U.S. law)? Illinois

I have a home (primary residence) that I am losing due to economy/job loss/etc. I've been through all the routes and am very close to getting a short sale done. The original mortgage was an 80/20 split and the second lender (who was sold off) has been the hardest to work with/get approval of releasing the lien. However, I just received my letter from the second lender and it basically states that even after the shortsale I will owe the rest (70K) and they will come after me blah blah.

Well, I make to much to declare chapter 7, but I don't make enough to pay rent, 2 kids, life, etc and have a 70K bill added on.

So in a nutshell; I have to pay money to get the shortsale to go through to satisfy the second lender; but if they are going to sue me, and I can't declare chapter 7 whats the point really?

If I go into foreclosure at least I will have more debt added to my name so maybe bankruptcy would be an option then.

Frying Pan or Fire; I am having a hard time deciding, any advice??