If no such payment is made, the committee will go forward with the sale.In Connecticut, a lender can sue to obtain a deficiency judgment...

So in this case, the debt is not cancelled and the borrower has no tax liability.With FCL sale, the collateral is removed as security for the debt, and any deficiency between funds received and funds owed is debt that can still be collected via deficiency judgment.For debt forgiven as part of a loan mod, this seems to me that it would qualify as debt forgiveness. 

Lower priced properties are affordable to a larger portion of the population but may not be as desirable if they're "deficient" in some way like lacking bedroom count or garage.  

Approximately $20,000 was past-due on the mortgage and this included principal, interest, escrow deficiencies and legal fees.

I know it doesn't make sense that it would but, if you were able to slide in and get it for a deal, and the borrower owed more than the deal you got, if they are in a deficiency state, the bank could come back and sue the borrower for the difference.

If you didn't note any deficiencies at the time of their departure I think it will be difficult to hold their money.

Over the years a large property management company has slapped lipstick on them (vinyl siding, newer windows, newer roofs) but at the end of the day they are structurally deficient and poorly constructed.I suggest reaching out to Matt O'Grady here on BP for more info on multi families in New London.Best of luck!

If he used one of those... he is probably better off cutting his losses and expecting to not be able to use that bidding service again.That said... here's what I'd do.Step 1: Yell.Step 2: New title company.Step 3: Determine the terms of the existing 1st TD.Step 4: Determine if the terms of the existing 1st TD could in any way be supported by a tenant.Step 5: If Step 4 is a no go, approach the lender about a SS or DIL, incorporating into any agreement that the lender will not pursue a deficiency judgment.

In my area, the banks are bidding less than the current balance as there are few (if any) other bidders at the sheriff's sale.The people are free to then sell or redeem these properties for the lower amount, but could be on the hook for the deficiency down the road.

They lose nothing, unless they do bid, then they lose the amount they bid, plus the amount they lent previously.Let's also not forget, you have state and federal rules at play here. in a deficiency state, you can't go after the borrower for a deficiency without establishing the deficiency amount.