Hi - my name is XXXXX XXXXX X'X a Real Estate litigation attorney. Thanks for your question. I'll be glad to assist.
Please give me a moment to do some research on this and I'll reply back.
The loans are guaranteed by HUD, which means that any deficiency is paid by the government to the lender to cover in the event that the property is worth less than the amount recovered through foreclosure. Here's a good link on that: http://www.hud.gov/offices/pih/ih/homeownership/184/processing/chap5.htm
However, HUD does have the right to seek a deficiency judgment against the owner for whatever amount it paid the lender. So there's a chance that a deficiency could be sought by HUD - not BOA.
Also, HUD could require BOA to act on its behalf in securing the deficiency. Here's the statute on that: http://www.law.cornell.edu/cfr/text/24/203.369
Thank you, Roger. I wonder if the likelihood of HUD coming after us for the deficiency balance is very great? If so, I think they only have 90 days in Oklahoma after the sale. Won't know if there is a deficiency until the sale but the market value is about $265K and they say we owe them about $290K (mostly fees). The principal due to them is $236K. We tried so hard to get BofA to work with us and asked them for ShortSale (we had several buyers), DIL, etc., but they refused.
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