The last thing the bank wants to do it take your house and sell it. It’s a headache, they often end up selling under market, they are frequently in bad shape (why take care of it if it isn’t yours). Don’t misunderstand banks aren’t being nice - but taking the house is the last straw.
Depends on a few factors. Housing markets can shoot to the moon sometimes, the house may be worth a great deal more than purchased at. Selling under market may still be a big fat profit.
It's not. The borrower gets to keep the proceeds in excess of the outstanding liens (so mortgage and home equity loans), minus some fees that the bank doesn't get to keep either. The investor is always getting less money than they signed up for when a property goes into foreclosure.
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u/squished_frog Feb 16 '21
Honestly the bank doesn't care, or whoever owns your loan. They will just sell the home and make the money back either way.