is the bank going to collect the unpaid balance after they sell they property?

Hi Sebastian,

There are chances that the lender may come after you for the deficient balance resulting from the sale of the investment property after a deed in lieu of foreclosure. If the property would have been your primary residence, then the lender would have forgiven the balance dues.

Thanks

if the bank does a 1099, can they still come after me for the deficient balance?....

If the bank forgives the deficient balance and issues a 1099c form, then it won't come after you for the balance dues.