In many cases the lender is restricted by the state laws or Federal laws from pursuing the deficiency judgment.  In some of the states like California, the original mortgage that is taken out at the buying time is a non-recourse loan. Such is not however, the case of refinanced loans or the secondary or transferred home loans normally provided as foreclosure help. These loans cannot assume the role of non-recourse loans. 

When the lender decides on their own that the deficiency judgment cannot be pursued in this case or in case it is not possible to pursue such judgment because the loan itself is non-recourse, the normal procedure for them is to write off the loss by way of loan modification ,an exigency may arise for the borrower. The borrower in such cases may be liable to pay the income tax on any such amount which remains unsettled. 

Other loans that are obtained against the property that is subject to foreclosure are also cleared as a result of such foreclosure. Such loans may be second mortgage or any loan that is a repetition like the home equity loans. But the problem for the borrower is that the loan has still to be paid out if it is not settled by the foreclosure and auction proceeds received. 

Sometimes companies involve in the process of buying properties that are put to auction on the basis of foreclosure proceedings. Many agencies consider such distressed properties to be a profitable investment. The stop foreclosure blogs are full of such information.