Foreclosure 2

The more common option is for the bank to foreclose on the house itself. This means the bank demands all the remaining loan money at once and asks the court to allow the house to be sold. If the judge agrees, the house is advertised and then sold at a public auction to whoever offers the highest price.Up until the moment the house is sold at the auction, the homeowner still has a chance to stop everything. This is called the equity of redemption. If the homeowner can come up with all the money they owe, plus extra costs like legal fees, the foreclosure stops and they keep the house. Once the auction happens, that chance is gone.If the house is sold, the court officially gives ownership to the buyer. The buyer gets the house “as is,” meaning no promises about its condition. If the house sells for more money than what the bank was owed, the extra money goes back to the homeowner. If it sells for less, the bank may ask the court to make the homeowner pay the difference, which is called a deficiency.