I hear from people who are very very frustrated and they will often say that they are simply going to walk away and let their house go to foreclosure sale. When the bank forecloses on a home and tries to sell it at auction and nobody buys it, the bank still owns the house. During the housing boom, millions of homeowners got easy access to mortgages. So, if your home is on the market, continue to aggressively seek a buyer for it, even after your lender initiates the foreclosure process.
The original owner is entitled to any surplus of the sale proceeds, after the mortgage, interest and costs of foreclosure are paid. In some cases, this strategy got the case thrown out of the county court and moved to federal court, which takes a lot more time because the lender has to re-file everything and wait for a new court date.
Foreclosure Market Report, which shows foreclosure filings default notices, scheduled auctions and bank repossessions were reported on 624,753 U.S. Even in this case, though, many homeowners can use other options in order to avoid losing the home or having to keep paying the judgment even if the house does not sell for enough at auction to pay it off completely.
Thankfully, this is often not a danger to the vast majority of homeowners, as mortgage companies usually will not go after a deficiency judgment. You can cure a default by paying the lender missed payments, plus fees and costs before acceleration of the mortgage.
Upon final judgment (usually summary judgment ) in the lender’s favor, the property is subject to auction by the county sheriff or some other officer of the court. If you don’t respond, the bank will ask the court for a default judgment and will automatically win the suit.