It's a called a "waiver of deficiency" letter and do not close without it.Do not believe anything the bank says unless it is in writing.You also have to know which department you are talking to.You can get conflicting information depending on if you are talking to customer service,collections,loss mitigation,the short sale department,bankruptcy department,and the foreclosure department.In big banks these are all separate but in some local to regional banks one person might be handling multiple departments.They will all look at it differently with various goals in mind for the the loan file.

All he has to do then is complete a standard sale agreement?

That answer determines your rights under Wisconsin law.If you didn't use a standard Wisconsin form, these rights may not apply.

In a somewhat related story... the city of San Bernadino also just filed for bankruptcy.

Meanwhile, I have feelers out on RE attorneys (spoke to one, but $500 LLC package fee and $250/hr for any additional questions is a little steep for something that costs $50 to file by yourself).

San Bernardino to file bankruptcy 3rd city in CA to file.

Aside from the more lenient standards and lower interest rate, what could be some additional benefits of an FHA mortgage?

The manufactured homes are built to higher standards also.

Do I need to file the new articles of organization with anyone?

A standard landlord's policy will cover your property, your tenant should have a tenants policy.