Sherriff Sale????
If a house goes to foreclosure , sells at a sherriff's auction, and sells for less than what is owed then what happens? Does the owner have to come up with the difference? Does the bank call it even with taking back the title? Can anyone help me on this one??? Any answers would be appreciated. Thanks
lemans1969,Most houses sell at sheriff's sales for less than what is owed. After the sale the bank files a default judgement against the former owner for the difference. Very seldom do banks ever receive any money from the former owners.
Foreclosure laws and customs vary from state to state, county to county, and from lender to lender.
While some (former) mortgagees may pursue a deficiency.. some are prohibited by law, and many don't bother.
on occasion here in PA, i see homes go below what is owed on them, but primarily the opening bid is the loan balance + late fees + court costs. very rarely do i see the court ask the representative from the lender (if there) do they wish to go lower to entertain an offer. so here, most homes don't sell at all, because what's owed is too close to fmv. hahaha.
Quote:
On 2004-02-09 12:40, jackman wrote:
on occasion here in PA, i see homes go below what is owed on them, but primarily the opening bid is the loan balance + late fees + court costs. very rarely do i see the court ask the representative from the lender (if there) do they wish to go lower to entertain an offer. so here, most homes don't sell at all, because what's owed is too close to fmv. hahaha.
Then they go back on the market at extremely low prices at least in pgh. I have seen that trend in Phila. The reason for this is because when the banks take them back they get paid from the insurance. It is all about the money, there are so many agencies involved, it makes my head spin from the paperwork
Lori
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