Ask a Lawyer and Get Answers to Your Legal Questions
That changes things a bit because the bank would have to foreclose in NM where the property is located and then decide if they wanted to sue for a deficiency there because it is allowed in NM. There is a specific provision for deficiency judgments as part of non-judicial foreclosures with the exception that no deficiency judgment is permitted in the case of a sale related to low income property.
So if this is a lower income property, then the lender may not even bother unless they think father has assets that they could come after. But if his only income is his retirement, and he doesn't have any other assets with equity, then they may just write it off as a loss and have the feds pay on any mortgage insurance if this was a Fannie Mae or Freddy Mac loan.