Question:

What happens after a foreclosure?

Answer:

What happens after a foreclosure depends on whether you have had strict foreclosure or a foreclosure by sale.

In a strict foreclosure, the court will set a law day for you and for any other defendants of the property. After your law day expires, you will have no rights over the property whatsoever. If the value of the property after foreclosure does not cover what is owed to the lender, the creditor(s) may file a deficiency judgment.

In foreclosure by sale, there will be an auction set by the court. If you pay your debt plus court and any legal fees prior to he auction date, you remain in title. After the auction, the money will go to cover court proceedings, then they will go to your first mortgage lender, and then to any junior liens you may have on the property. Any remaining funds will go to you. In case the auction bid does not cover the debt owed to any of the creditors in the foreclosure, they may file a deficiency judgment and you will have to go to court with those creditors.

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