Theoretically it is possible for any lender in a foreclosure to pursue what is called a “deficiency Judgment.” This is the amount they lost after selling the property to a third party. The amount they “lost” includes all their interest, penalties, legal fees, court costs, and other out of pocket expenses.
Most mortgage lenders do not seek or obtain deficiency judgments on residential property. Generally speaking they are futile and uncollectible and the foreclosure is enough to put a big black mark on your credit history.
For one thing, they open themselves up to a night mare of counterclaims because of all the violations and breaches they committed during the closing process. For another reason, they would be digging themselves deeper into a hole they are already in — that they went for the sale and foreclosure without owning the mortgage and note and without proper authority to do as because in the rush to sell all these mortgages, most of the people didn’t know what they were doing or care. They just wanted the money that was rushing in.