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> If this was in the US then almost certainly yes, if they had 130k cash or someone willing to lend it to them despite their recent default. You can generally "mail the keys to the bank" and have no further liability.

No, only 15 states generally prohibit mortgage deficiency judgements (and those prohibitions mostly apply only to first mortgages, and some are limited even there), in the rest the creditor can come after you for the unrecovered balance after a foreclosure sale.

https://www.legalmatch.com/law-library/article/anti-deficien...



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