Has anyone ever been through a foreclosure on a home? If so, were you responsible for any fees or charges?
Question:
They will take the home and sell it. You will be responsible for all selling fees and you will be responsible for the difference in what you currently owe and what the home brings. For example, if you owe $100,000 and they sell it for $50,000 you will still owe them $50,000.
I have run foreclosures on homes. It all depends on the statutes of your state and the terms of the mortgage document and promissory note. Some states limit a lender's right to fees and may or may not limit the liability of the borrower -- some states have anti-deficiency statutes which make it impossible for a lender to collect if the proceeds of the sale do not cover the debt. This may depend on whether the loan is foreclosed under a deed of trust or as a mortgage and whether the loan is a loan used to acquire the property (refinancings in some states are not limited recourse loans).
Generally, fees and charges can be collected by the creditor out of the proceeds of the sale. Also, if the loan is recourse, the fees and charges can be added to the unpaid obligation of the debtor if the proceeds from the sale do not repay the loan in full plus cover the fees and charges. That can lead to a lawsuit to collect on the unpaid balance on the promissory note.
Your best bet is to get advice from a local lawyer or check with the title company handling the foreclosure. Your lender or the lawyer handling the foreclosure for the lender may also tell you what your obligations are.
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