do you owe money after a foreclosure?

Answer 1

If the property does not sell for what is owed plus all the fees, expenses, etc added on top, yes you are responsible for the difference. What is called a deficiency judgement would be entered

Deficiency Judgment
A deficiency judgment is an order by the court, after the law day or sale date, that says that you still owe money to the lender.

In a strict foreclosure, if, after the law day, the property is worth less than your total debt to the lender, the court will enter a deficiency judgment against you. The amount you owe will be the difference between the total debt and the value of the property. A deficiency judgment following a strict foreclosure requires a separate hearing, and you have a right to be present and argue against the deficiency. The plaintiff is required to present testimony by an appraiser or an affidavit signed by an appraiser regarding the value of the property. You can hire your own appraiser to counter the plaintiff's appraiser, or you can simply ask questions of the plaintiff's appraiser to show that his or her conclusion of value is in error, or you can testify as to the value of the property.

In a foreclosure by sale, if the auction brings in less money than your total debt to the lender, then the court will also enter a deficiency judgment. The amount you owe will be the difference between the total debt to the lender, and net proceeds of the auction sale, subject to a discount that the law provides where the sale price is less than the appraised value.

Answer 2

I have been in the real estate field since 1978.

Normally once a foreclosure is complete and the property is sold or not sold that is final.

There is a possibility that a lender can issue a deficiency judgment against you, I have yet to hear of a lender taking such action.

Most lenders will only lend a certain percentage of what the property is worth, so when they do get property in a foreclosure there is equity.

Say a house is valued at $250,000, a lender will normally lend only 80% of that value making the loan $200,000, so there is a built in equity of $50,000.

So in answer to your question, it is a possibility, but I doubt very seriously that a lender will start any procedures against you for additional money.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

It all depends on your lender, most of the time if the property sells at auction or as an REO, and its less than what you owed, they will put a judgment on you for the difference.

Answer 4

no.