Foreclosure on a Second Home in Michigan

My question involves a mortgage in the state of: Michigan

A friend of our's husband died recently leaving two mortgages and a small life insurance policy. With the policy, the widow was able to pay off the loan on the main residence. A cottage still has a loan, which can't be paid because of the loss of income. We suggested she turn the keys back to the bank with a note explaining the situation, which she did. The bank has acknowledged the receipt of the keys. The mortgage is about $22,000 more than the property value, so I am assuming the bank is going to file a deficiency judgment. Can this judgment place a lien on her main residence?

Before she turned the keys in she tried to sell the property and she looked for someone to buy the property on a short sale but no one stepped to the plate.

About six months before the husband died, the couple approached the bank regarding the situation to see if they could offer some kind of renegotiation. Their response was they were the only game in town, and wouldn't talk to them.

Do you think the bank would actually go after her house for $22,000? She doesn't have any other debts. I've worked up a budget for her, and she barely has enough to get by on, and there is very little savings left after the hospital bills.

whose names are on the mortgage for both properties? How was title to each of the properties held (joint, tenants in common, tenants in the entirety)?

The main residence is now paid off, so there is no mortgage. The house is solely in her name. The cottage mortgage is joint tenants; but, since he is deceased I would assume the mortgage becomes solely hers.