Do you still owe money to the bank after a foreclosure?

+1 vote
asked Feb 21, 2019 in Real Estate - Renting by dag7832dga (220 points)
Do you still owe money to the bank after a foreclosure?

After a bank forecloses on your home do you still owe the bank the money for the mortgage?

1 Answer

0 votes
answered Feb 21, 2019 by Adf289 (58,200 points)
If your house has been foreclosed on and the house sells at a foreclosure auction and your home sells for as much as you owe to the bank on the mortgage then you won't owe the bank anymore money on the mortgage.

However if the home sells for less than what you owe on the mortgage through the foreclosure auction then you'll still owe at least the remaining amount on the foreclosed home.

You can usually stop the foreclosure by paying back the missed payments in full and any other fees such as the foreclosure fee before the house actually sells at an auction but if not then the bank will foreclose and you'll have to move out of the home.

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