What Happens to My Equity After Foreclosure?

Most of it, if not all, will go towards the foreclosure process.  The cost of foreclosures are quite expensive, and show exactly why a bank or lender does not want to own your home.  They would rather work out a loan modification or work out a payment plan for you to keep the house.

Fees include:

• Missed Payments and Interest
• Administrative Fees totally $10 to 15K for going into default
• Auction will total about $15,000
• If nobody bids 90% of the appraised price, they will end up owning the property at Auction.
• If the bank now owns the property, they need to hire a listing agent to sell the property
• During the listing, the banks loses money each month owning the property

If you cannot afford making your payments, typically banks will work with you and be accomodating if you tell them what is happening to your finances.  They do not want to foreclose.