BTW, it doesn't matter to the seller/homeowner how much the house eventually short sells for.As you know CC, it could be argued that mitigating the loss to the bank will increase the likelihood that the borrower gets their situation resolved with a better chance of no or reduced deficiency.

I am currently working with a manager who was fine for an upscale property but appears to be deficient with those at the lower end of the spectrum. 

If the tenant contacts us about some deficiency in the unit that falls under our purveyance, i.e. leaking toilet, dead AC compressor, we send someone out to take care of it.

If there is a foreclosure it would show on her record and she would be liable for any deficiency.

As you develop experience, and start developing systems and training your staff, you become more deficient.

Throughout the process we attempt to convince the bank not to ask for a deficiency judgment.

Even if it is NNN or Abs NNN, you will want to do a property condition report to determine all the deficiencies in the property (it's a couple hundred dollars).

I'm not one.If your friend owns the property in a recourse state, then the lender will be able to get a deficiency judgment on the foreclosure if it sells at auction for less than is owed.

However, that being said, I have also been told that MCB (the law firm handling MI properties) is more lienient with EMD refunds due to inspection deficiencies than that of the law firms in other states.

Most people may not have money but pending on a states statues and how long you can pursue/renew judgment at some point they will more money and a better paying job.Thats what banks are doing, reserving right for possible future collection on short sales and some time foreclosures tend to have a very limited deficiency on them in most states(6 to 12 months on the first lien) If someone was a skilled worker and just happens to be laid off or out of job now sooner than later they will find a job that was paying them close to what they were earning.As you said it is just a waiting game for now.