Without reviewing the file and knowing all of the variables, it's hard to give you an exact amount, but, if title is clean and there are minimal taxes owed or tax lien - the guy might just sign over the property in a deed in lieu for you once he gets served to avoid a deficiency balance.

Yes a mortgage note you can go after the borrower for a deficiency. for example if the loan is $50k and they trash the place and you foreclose and it sells for $25k, you "could" go after them for the delta (reality is in most cases you are trying to get water from a rock - which is why its important to vet the borrower).2.

In other states, lenders can foreclose and if they are not made whole by that one property, they can sue for the deficiency and collect against all your assets, including other property. 

Other than that maybe Oregon has a different nomenclature for these.But agreed, you do not get off the hook for  the mortgage and a lender can still pursue a deficiency judgement against you if they do not redeem their full payoff amount by assuming the property, depending on the state. 

But you aren't required to rewire the entire house at that point, just address the panel and any obvious safety deficiencies related to the panel upgrade. 

Some details that you want in that approval are the waiver of deficiency and hopefully some relocation funds for you seller.If you can't find a buyer, market the property as an approved short sale for the seller's sake and because its the right thing to do.If the price is still too high and you can't sell it, you want to have an inspection done by a trusted contractor.

You need to evaluate multiple MSAs for viability, but amongst those prospect cities, where you find you best relationships and those that can remedy your deficiencies is where you'll end up investing. 

@Roberta James @Ralphy Rosado  sub too in my mind is an advanced strategy and not at all appropriate for beginner investors who are not very well capitalized.Granted you get into the deal.. but for the seller these are HUGELY risky.. as least as it relates to the credit and potential for deficiency judgment if you cannot execute your plan.For the established well capitalized company or investor who can simply write a check to pay off the underlying debt at anytime or easily refi.. that's when this is an appropriate scheme.Touting this to those just starting in the business creates all sorts of havoc for many folks.I have seen people try this as a beginner strategy in get into a lot of hot water legally.and Seller get totally fubared vis a vi their credit if the person they deeded the property over to cant execute and goes dark.. or worse does a sandwhich lease option that gets recorded and that lessor goes dark.. its a cluster of the first order.

If you can't find him for any deficiency judgement, collect it from her, that's what you'd have to do if he died, unless you filed against his estate and if your judgement was after his estate had been settled, you have no recourse with him.

But Boomers grew up, got jobs, had kids and started complaining about their kids (Gen X): “All they want to do is watch MTV, listen to punk rock, play Atari, the divorce rate and afternoon television is turning them into latchkey kids that will have all kinds of mental deficiencies, they’re so entitled and lazy and self centered, they’re all going to end up either socially-inept psychos or cynical disaffected slackers, addicted to crack and with AIDs, America is going straight down the tubes”.