The lender isn't bound by your operating agreement, they are bound by the loan agreement, which will most certainly say that you each are jointly and severally liable (which means that each of you and all of you are responsible for the whole deficiency--basically whoever they can get to first, or whoever has the most assets for them to seize).This is why a wealthy person wouldn't want to sign a PG with a broke partner(s). 

Unless the HML is Joe's Uncle, who knows nothing about RE, they are generally not going to lend you something that's guaranteed to fail which is the case using your original numbers.If you're not on the personal hook for any deficiency, or don't have any assets, you may have to just chalk this one up to bankruptcy and learn from the mistakes.

We can give them a list of regular sale comps, and/or explain the deficiencies in the short sale and REO comps.

If the lender discovers "a deficiency" in the appraisal that is not resolved by the appraiser, then the lender can order a 2nd valuation.

Sometimes it’s the hard money lender sometimes it could be someone elsePlease also note most hard money lenders also can seek a deficiency judgment which is the balance owed on the loan after it is sold at saleIf you are a borrower you can also work out a deed in lieu which is when you give it to them without going through this processWe recently received $200M in these types of defaulted loans to bid on, so we are starting to see and uptick in defaults.Memphis area had over 50 on the list.

Lol, so I guess that in itself is a communication deficiency.

Did the tenant put too much down the drain and break it (their fault), or am I on the hook as the landlord to replace an old, deficient GD (my problem)? 

If you foreclose on a borrower, and don't recoup the full amount owed on the note and mortgage (plus arrears, legal fees, etc), then you can file a deficiency judgement for the remainder.  

A foreclosure of course would result from Alecia having to make the difficult decision, does she hire an attorney to figure out how to get access (not a guarantee) or default on the loan and walk away from the property with the attendant effect on her credit and continuing liability for any deficiency if the value of the property is less than the debt.One last thing to consider. 

I could be wrong of course and I dont know what state your in.. but the redemption rights are for the owner of the property.. they would have to redeem the first and then the second reattaches if there is no redemption the second is removed from the property but the owner who lost it still owes the money on the note and the second can sue on the note for a deficiency.