If your loan was foreclosed, they will not seek a deficiency judgment. Your facts sound pretty convoluted. I would meet with a real estate attorney in your area and let them review your documents. You may want to file a credit reporting suit against Ocwen and then they will correct it.
Just because you are pursuing a short sale, does not mean the lender will accept it or stop the foreclosure process. They like to keep the ax over your head essentially. I would contact the lender and submit the offer to see if they will approve the short sale. If they do, they will postpone the foreclosure sale.