A foreclosure may not relieve you of a deficiency if your credit union bids less than its mortgage balance at a sheriff sale. It's been happening more and more on Michigan properties because Michigan considers the debt settled if the bank (or credit union) bids the full amount the loan at sheriff sale. Even if it is its own loan.
Banks & mortgage companies are now bidding less than their loan balance to be able (or have the right) to come after you for the difference. I would recommend consulting with an attorney on this because it can be rather tricky. - Tue Dec 7, 2010