I'm not an expert here but I'll give it a shot. The Lender has a choice of either a Deficiency Judgement or send you a form 1099C. They can't do both. With the DJ they may come after the difference from you but it sounds in your case you have nothing left. They could send you a form 1099C come tax time where in you will have to claim the difference as income. Hopefully you claim insolvency and supply a hardship letter and just maybe they'll wave the whole thing. I've seen it and the Lenders are very busy. Once the Lender desides what they what to do contact a CPA. Just my two cents worth. Herb

The bankruptcy questions are best left to your bankruptcy attorney. You said the mortgage company bought the house at auction. I'm assuming the auction was the "Sheriff's Sale." You will want to find out what they paid for the property at the Sheriff's Sale. If the price they paid was in the amount that you owed on your mortgage, you may not owe anything else because the loan has been technically satisfied. If they paid less than your mortgage balance, you may owe the difference between what you owed and what they paid at auction. This is also information you would want to discuss in detail with your attorney to assess your personal situation.

Yes, the bank could come to you for the money. I have heard of them selling off the bad debt to collection companies who specialize in this.

Sorry you lost your home.