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You might not have seen my answer in the other thread... If they foreclose using a "non-judicial" foreclosure, which is about 95% of them, then they just get the house back...period. They can't come after father for anything else.
So odds are that they will just get the house back, sell it, and then claim a loss that the govt insurance will pay them off for.
But his retirement is exempt under federal law from creditors and any life insurance goes directly to the beneficiary and isn't part of his estate.