Default on hard money loan

[Brian G.]

Hi guys. My partner and I have a hard money loan on a property we are flipping. We are both 50/50 owners of the llc the property was purchased under. We both personally guaranteed the loan. Loan was for 90% percent of purchase and 100% construction.  I have a few questions. Can someone help me out? 

If the current market tanks and we cant sell it to cover the loan amount we owe, how does the hard money lender recoup the money owed on the loan. 

For example: 

We sell the property for 350k and the loan amount was for 400k? 

Does the lender sue the llc for the 50k? Us individually? Am I responsible for only 25k since we are 50/50 owners of the property? 

I know we will loose the cash we put into the deal.

Can someone tell me how this works please?