What happens to the balance of my loan after a foreclosure?

In Arizona, the answer to what happens to the remaining balance of a loan after a foreclosure depends on what kind of loan it is. In the case of an unpaid mortgage loan, the lender may sue the borrower for the unpaid debt. After a court of law determines how much the borrower owes for the defaulted loan, the lender may garnish the borrower’s wages or bank accounts as payment for the remaining debt. If the loan was secured using collateral, such as a car or a house, the lender can seize that collateral to collect the unpaid debt. The lender will sell the collateral and apply the proceeds to the borrower’s loan. If the proceeds from the sale of the collateral are insufficient to satisfy the loan, the lender may still pursue legal action against the borrower to collect the balance of the loan. It’s important to note that, in most cases, even if the lender is successful in collecting the unpaid balance of the loan, this amount is usually less than the original amount owed due to the associated fees and costs of the foreclosure process. If you are facing foreclosure in Arizona, it’s important to seek professional help to understand your options and protect your rights. A real estate or bankruptcy attorney can help you understand your options and explain what will happen to the balance of your loan after a foreclosure.

Related FAQs

What are the differences between foreclosure and pre-foreclosure?
Can I stop a foreclosure sale without filing for bankruptcy?
What are the foreclosure options for servicemembers?
Can I get a loan modification during a foreclosure?
How can I find out if I am a victim of wrongful foreclosure?
What are the duties of the lender in a foreclosure?
What happens if I don't make my mortgage payments?
Can I pay off a foreclosure in full?
Can a lender foreclose on a property without a court order?
What are the differences between a foreclosure and a short sale?

What happens to the balance of my loan after a foreclosure?

Related FAQs

Related Blog Posts