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Home >> Lending >> Home Mortgage
Out of Work, Worried About Foreclosure
My mortgage is about 20% of the value of my home, but I am out of work now and am worried about foreclosure. What can I do? If the bank forecloses, do I keep the surplus from the sale after the bank is paid for its loan?
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 Generally, yes, but the current market value of the home may be lower than you project in today's market, and the cost of the loan would have to be paid, in addition to the legal fees the lender pays his attorney for your collection, the foreclosure process and whatever else is allowed for in your loan contract. Your best bet is to call your lender and tell him what has happened. You may be eligible for a government sponsored program, some affordable refinance program or the lender may have other options. They don't want to foreclose either. Be ready to discuss your finances with them, what money you have coming in, in the bank, job prospects, other bills, etc.
Your last option is to try and sell your home yourself to recover as much of your equity as you can. Still, call your lender and discuss this with him.
Published on BankingQuestions.com 3/19/09
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