If the the bank repossesses a home...?

Question

If the bank repossesses a house would it be sold for the exact outstanding amount owed or if a profit is made where does it go to?

Answer 1

Yep, the borrower will receive any profits after costs, the down side is that with a repo on your credit file your chances of getting a mortgage are next to nothing

EDIT: From experience i KNOW this is correct in the UK

Answer 2

If a profit is made, the bank will claim some or all of it to cover their expenses (legal fees, etc.) as costs to process the foreclosure and repossession. For further explanation of the process, see the provided URL and read "the lender's profits'.

Answer 3

I basically be responsive to of a application that Fannie Mia is popping out with tension from the federal gov to lease back to the previous proprietors of a foreclosed belongings, area of the reason being they do no longer desire to saturate the marketplace with maximum of residences on the marketplace so as that they are going to hold directly to those residences for a on an analogous time as, be very careful with whom you deal they have been all style of scams ( you're sensing ultimate) based interior the area they might have this application of renting to anybody, i'd ask of the deed or examine interior the standard public documents for the owner to be certain you're coping with a representative of the owner, which will frequently a real belongings agent.

Answer 4

Any proceeds above and beyond what is owed to the lienholders would be returned to the borrower.