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If a bank is going to forclose on you, do you still have to pay mortgage?

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asked May 16, 2013 in Mortgage by anonymous
   

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No, if a homeowner is faced with foreclosure, then the bank or financial institution revokes the deed.  This obviously is detrimental to a person's credit report.  All money (equity) the owner has invested in the property will be forfeited and the financial instution takes ownership.  If the promissory note has a recourse clause then if the sale does not bring enough to pay the existing balance of principal and fees the mortgagee can file a claim for a deficiency judgement.  In most States, the items included are: loan principal, accrued interest and attorneys fees less the amount the lender bid at the foreclosure sale.
answered May 16, 2013 by Manswerwhiz Inquisitive Expert (8,540 points)
reshown Oct 8, 2013 by smartguy

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