Is Money Owed to the Lender After Foreclosure?

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Even if your home sells for hard money at a foreclosure sale, it may not be enough to cover the original mortgage amount, and you could be held responsible for that after a foreclosure.

While most homeowners may think a foreclosure will clear them of debt on private loans, this isn't always the case. Even if your home sells as a pre foreclosure, at foreclosure auction or at a short sale, it may not be enough to cover the debt owed to your mortgage brokers. This is especially true today. Due to the slumping housing market, many money lenders are foreclosing on houses that are now worth much less than their original mortgage. Even if your home sells for hard money at a foreclosure sale, it may not be enough to cover the original mortgage amount, and you could be held responsible for that after a foreclosure.