The Bank should take several actions in light of the Deficiency Statute:
Make an initial determination as to whether the Bank will pursue a deficiency at the time the Bank’s bid price is calculated;
Carefully document and keep good records of the fair market value of the property at the time of the foreclosure sale;
Bid at the foreclosure sale the lesser of fair market value or the amount of the indebtedness (but in no event, bid less than 70% of fair market value);
In a friendly foreclosure situation, negotiate the fair market value of the property and the amount of the deficiency, and bid the agreed-upon fair market value at the foreclosure sale;
Immediately apply for proceeds of private mortgage insurance, if available, after the nonjudicial foreclosure; and
Bring a suit on the deficiency within two (2) years of the date of foreclosure sale if the Bank chooses to pursue a deficiency.
If the Bank becomes the owner of the property, take actions to ensure that the Bank’s liability insurance extends to covering the new property.