Title: What Happens When You Let Your House Go Back to the Bank? | Home Guides | SF Gate
Headings: What Happens When You Let Your House Go Back to the Bank?
What Happens When You Let Your House Go Back to the Bank?
Losing Your House
Get the Best Mortgage Rate for You
Deficiency Judgments
Credit Post-Foreclosure
Mortgage Free Living
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Deficiency Judgments
After you lose your house to the bank, you may not be finished with responsibility for it. Many states allow lenders to pursue the difference between what you owe the bank and what they recover from the sale of your house after they take it back. If you owe $210,000 and the bank only gets $160,000 after selling your house and paying its expenses, you'll be on the hook for the remaining $50,000. It's important to talk to a real estate attorney to find out what your liability could be. If you negotiate a deed in lieu of foreclosure, the attorney can also help you ensure that the bank agrees not to pursue you for the deficiency after accepting the deed. Credit Post-Foreclosure
A foreclosure affects your credit report in two ways.