Had we been forced to foreclose I'd have gone after the borrower for a deficiency.

The bk did not wipe out the loan or a secured creditor's ability to secure the collateral in the event of default and sell it but they won't be seeking any deficiency judgment.

@Ali Langston I preach starting with a self-assessment of what you are great at and were you are deficient.

If the loan is residential, then you need to look to the state on whether a deficiency is allowed.

The reason the bank is involved is that the bank agrees to not go after the seller for the deficiency between the mortgage balance and the sales price.

In the end, no, as the lender has the rights to seek deficiency amounts and had accepted the collateral as granted, the lender did not have the entire bundle of rights to make improvements as an owner might.

If it's a recourse state, the lender may sue you for a deficiency judgment if you let the condo go.

Ask your attorney if you can go after the borrower for a deficiency.

They are looking for good candidates to pursue the deficiency on.

Fortunately, in California, if the lender (any position) agrees to a short sale, they can not seek a deficiency against the home owner.