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While this is certainly terrible, it's extremely rare when compared with ordinary foreclosures by private lenders. Mortgage holders don't return the homeowner t
by vannevar 5y ago
While this is certainly terrible, it's extremely rare when compared with ordinary foreclosures by private lenders. Mortgage holders don't return the homeowner the difference if the property is later sold for more than the balance of the debt, either.
- reggedtorespond 5y agoThat's false. If the proceeds of the foreclosure sale exceed the amount of debt and foreclosure costs the homeowner is issued a check for the difference. This makes it so banks do not have extra incentive to foreclose on homeowners. This would be a good solution to the problem in this article.
- vannevar 5y agoYes, I'm wrong. Only in REO cases does the bank keep the entire amount. Not sure how common REOs are versus property tax seizures.