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Yes.
The bank in a short sale has the final say on what they will accept and won’t.
BUT..
if you are in a state that is non recourse (not sure though on investment property…but I know for primary residence) they cannot sue you or get the shortfall. They will send you a 1099 with the shortfall and you have to claim it as income on your taxes. California is a non recourse state if your property is there.