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If my house is foreclosed do I still owe the bank?

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Foreclosure can be a scary and uncertain time. You might be wondering what kind of implications foreclosure will have on your life, and what steps you can take to make the process easier on yourself. If you’re facing foreclosure on your home, you might be wondering if you’ll still owe the bank once the process is finished.

Put simply, you may not owe your lender after they sell your home. In most cases, lenders are unable to expect you to pay any outstanding costs from the sale, unless they happen to repossess your home instead of foreclosing. Every foreclosure case is different, and your lender will be in contact with you before the foreclosure process begins.

Read on below to find out everything you need to know about foreclosure, and owing money.

What is foreclosure?

When you take out a home loan, your house is held by your lender as security. This means that your lender can repossess and sell the house if you fail to make repayments according to your loan contract. Foreclosure refers to the process when a lender takes possession of a property and sells after the homeowner fails to make their mortgage repayments.

Generally, if you fail to make your repayments, your lender will repossess your property to try and recover any money owing on the loan. Usually, foreclosed properties are either sold at an auction, or sold directly by the lender.

If my house is foreclosed do I still owe the bank?

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Foreclosure is the process in which a lender takes possession of a property, and then sells it if the homeowner has failed to make their mortgage repayments. The lender repossesses the property to try to regain any money that is left owing on the loan. In some cases, foreclosed properties are either sold directly by the lender or at auction.

Generally speaking, if your lender forecloses your home they may not be able to chase you for any shortfall. Of course, every foreclosure case is different and it may be best to get an expert opinion on your situation.  

How can J Daniels & Associates help me?

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J Daniels & Associates has more than 40 years’ experience and has helped 1,000’s of people successfully.

We advocate on our clients’ behalf with banks and creditors in order to stop home repossession, as well as helping to stop those in bankruptcy situations from being harassed by creditors. You shouldn’t have to live in constant fear, and that’s where we can help.

We aim to provide support services to those who do not know where to look, or who are confused about where to turn during the bankruptcy process. Our helpful advocates can assist you when you need it the most. We are able to give you confidential help, expert debt guidance and help you to find a personalised solution.

We don’t have any hidden fees, so you won’t have to worry about any nasty surprises. In addition to helping you to improve your financial situation, we can assist you in finding a solution to your mortgage issues. If you’re in need of help and support, give us a call today for your free consultation.

*Disclaimer: This article contains general comments and recommendations only. It is not intended to be and should not be construed as legal advice. This article has been prepared without taking account of your objectives, financial situation or needs. Before taking any action, you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs.

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