The Financial Fairy Tales Blog

Generally in most jurisdictions, a lender may foreclose the mortgaged house if certain conditions – principally, non-payment with the mortgage loan – obtain. Subject to local lawful requirements, the property are able to be sold. Any amounts received in the sale (net of costs) are put on the original debt. In some jurisdictions, mortgage loans tend to be non-recourse loans: if the cash recouped from sale of the mortgaged property are usually insufficient to cover the particular outstanding debt, the lender may not have recourse towards the borrower after property foreclosure. In other jurisdictions, the borrower stays responsible for any leftover debt.