Couple things:

Really, all I am probably suggesting in regard to deficiency judgments is that legislators lift or let lapse the laws they put in place during this foreclosure crisis to give foreclosed homeowners relief from deficiency judgments. 

But, at any rate, banks already can pursue deficiency judgments in other states and this is the first that I have heard it claimed that this could cause sales out of foreclosure to come to a screeching halt.  Thinking about this, I am not seeing how this would be a major problem for underwriting title... the judgment depends on, and thefore would always occur after, the foreclosure sale, right?  How would that affect title to the property that was sold?  Perhaps I am missing something here.