In a repossesion of a house does the lender keep the value of the entire property?

Question

i know this is a dumb question but if you have a 25 year mortgage and then for whatever reason after 15 years the owner falls into arrears and the house gets repossesed then does the morgage holder get any return? or does all the whole value of the property go back to the bank/lender? im sorry i know i havent worded the question very well but i hope you get the jist...

Answer 1

They recover all their fees and costs, anything left stays with the owner (who obviously isn't the owner any more)

Answer 2

They are entitled to take back from the sale

1. any outstanding loan

2. all legal and administrative charges regarding the repossession and the sale.

Answer 3

Ok, when a bank forecloses the house, the house is assesed and priced in accordance with the selling market around the neighborhood.  So if you purchase the house 15 years ago at $90,000 and two years ago it was worth $250,000 you foreclosed on it and now the last house that sold in your neighborhood sold at $95,000 because your comunity was hit hard on the housing crisis, then the only gain the bank will have is the $95,000 if they manage to sell it at asking price.  Only certain markets have retained their equity the majority of the neighborhoods have lost equity significantly.  So to answer your question equity is something that is gained when the market is up and there is a demand for properties.  Since the market is down not much equity to recover from this propery.    

Answer 4

When the house is resold, after repossession the bank resells, if they can. If there is a negative difference from what you owe then you owe them the remainder. If there is a profit, then they are supposed to give it to you. I have not seen anyone get a profit in the history of repossession. Generally they tack on a bunch more fees to add up enough to eat your profit so they don't owe you a dime.

Answer 5

no they give you whats left after the bills are paid etc, and they can add up..

LOOK into your state laws concerning something called a HOMESTEAD exemption if you have money or equity left after all the bills are paid you might qualify for this,

some states give you an extra $5,000 all the way up to $100,000 depending on the state you live in and all your details including if there is money left over, now this goes toward purchasing a new residence in your state BUT HEY it's free money.

Answer 6

the lender will take the money owed and any associated expenses , the rest goes to the home owner  

Answer 7

When a house is repossessed it will  be sold (usually for less than its market value to get a quick sale). If the sale price is more than the mortgage, then once the fees etc have  been paid the remainder will be given to the previous owner. If the sale price is less than owing on the mortgage, the the previous owner will have a balance left to pay. The  mortgage outstanding will be calculated at the time of sale ie less a lot of the future interest due.

Answer 8

You need to speak to your solicitor or someone from CAB, they are only entitled to what they're owed. Get legal advise and assistance asap.

Answer 9

the building society will sell the house and then out of the money they get for it they willtake thier costs and fees as well as what ever the vendor owed in mortgage arears then they should give you the balance

Answer 10

What happens if that they will sell the house and whatever they can get.  Then, if there is money left over you could get some.  But, if the house is worth less than what is owed then they come after you for the difference.  Most of the time if people have equity in the home they either sell it themselves or use the equity to refinance.  Now, if there is equity in the home then you would want to stay on top if them because I wouldn't expect them to contact you automatically to give you a refund.