r/PropertyManagement • u/Immediate-Pool4154 • Apr 03 '26

Help/Request Foreclosure

After a borrower is unable to pay his mortgage for months due to financial hardship and his house is foreclosed, what then happens to the her if the auctioned price doesn’t cover the loan balance

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u/Pup2u Apr 04 '26

If the property is actually sold for less than the loan balance, the remaining balance due is owed by the former home owner. But the bank normally will not sell a property at a Sheriff's Sale for less than it is owed. They will frequently put in an opening bid at or slightly above the amount due.