what happens when you forclose on a house?

Answer 1

Only a bank or other lender can foreclose. That means they are claiming posession of the house or other property on which they have a lien, probably because the borrower can no longer pay the mortgage.

Answer 2

If a house is being foreclosed on, that usually means that the owners (mortgagee) has not been paying their mortgage and the bank has finally decided to seize the house (which they have the right to, since they basically own it) and they usually (not always) sell it at auction in an attempt to get their money back.

If you are buying a foreclosed property at auction, and you're wondering if there's a problem with it, usually not, unless it was perhaps previously for sale and just hard to sell (in which case you might want to rethink buying it).

If your bank is foreclosing on you, that means that you need to pay them what they need, or they will sell the house in an effort to reclaim their money. It affects your credit report too, for a number of years, as future lenders will think twice about loaning to you, if they know that the last time someone lent you a good chunk of money it wasn't repaid.

Answer 3

If you are unable to make your payments, the bank can possess the house, sell it, recover the loan amount (in reality it does not happen since foreclosures often happen when home prices are down), and if there is anything left, give it to you. It is a terrible development for homeowner and can hurt your credit rating and ability to buy another home. If you are in a situation like this, there is hope, particularly if you have good credit otherwise. Here are some tips.

Answer 4

The bank takes it and sells or auctions it off. If there is still a balance on the mortgage after that, they come after you for the money.

Answer 5

Rephraze this question, are you getting Foreclosed on, or are you foreclousing on someone.