text: The mortgagee ( the lender / bank ) has the right to file a suit for a deficiency judgment for any loss suffered.  However, because of the situation, this is very rarely done.  Normally, they would win the suit but then how do they collect ?  If a person has lost a property through foreclosure, it isn't very likely that they are collectible.  But, if a person does have other assets and the lender knows about it,  they may file for a deficiency judgment.  If one is in the situation of possibly being foreclosed, it is usually better to sell the property and pay off the mortgage or discuss with the lender the possibility of a "deed in lieu of foreclosure".