The Mortgagee being dead (if they really mean deceased or out of business) doesn't affect the legality or enforcement of the Security Instrument (Mortgage/DOT) and Note.A "Note Judgement" which is not a technical term, seems to mean the borrower can only suffer from a Deficiency if one is pursued.

Let any deficiency accumulate in your PAL Account (ask your CPA) for future tax savings.  

See RLTO section below.I'm taking "subject to correcting a deficient amount of interest paid" to mean "in the event that the landlord doesn't return the deposit with enough interest". 

And I 2nd Bill's highlighting of such, so as great you feel they are, there is some deficiency there.

What is a deficiency judgment?

Gary, I'm not sure what you mean about how to structure the deal as the property usually has deficiencies or issues when most rehabbers get them, but not always, the property condition really effects the how or what kind of deal you need to do.Contract for deeds are common where allowed and the property condition is not an issue except in making sure the property will qualify for future financing requirements.

The makers/payors shall not be personally liable for any deficiency resulting from any sale and/or foreclosure hereunder.

Besides on seller financing there is not a deficiency anyway.This business is funMichael

The second and maybe the biggest reason is that by doing a short sale the lender is agreeing to the reduction of the principle balance on your loan and because of this the lender will not, in most cases, file a deficiency judgment against you.

Assignee further agrees to hold Assignor harmless from any deficiency or defect in the legality or enforceability of the terms of said agreement.