Recourse after Short Sale or Foreclosure?

[Holdingontohope]

Here's my story:

Bought the house in 2004
Refinanced with a new lender in 2005, cashed out $33K
Took out an equity line in 2006 with another lender, balance is $20K

We owe double what the house is currently worth.

What might happen if we short sale or foreclose? Are they going to come after the $53K? What about tax penalties?

Any advice would be greatly appreciated.

Thanks!