No Equity Back From a Foreclosure Auction? Maybe the Bank Planned it That Way
Many people facing foreclosure do not realize it, but there are several areas of the law that prohibit a mortgage lender from taking advantage of homeowners in a foreclosure situation. Every day, borrowers claim that their mortgage company “just wants my house because it is worth more than I owe.” In a few cases, this may be true, but legally, the lender must sell the home at sheriff sale for its fair market value and pay the former owners any proceeds over and above the amount owed. Banks may try and take advantage of the fact that most consumers do not know their rights when it comes to foreclosure.
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