On Thu, 23 Dec 2010 21:19:55 -0500, wrote:

On Fri, 24 Dec 2010 01:33:56 +0000 (UTC), Tegger
wrote:

Not true. The bank gets it money, but the borrower is still on the
hook for the money.




Nope. Buyers lose their equity, and their credit rating tanks, but
they're still off the hook for the remainder. That's how the banks ended
up with so many "foreclosed" properties on their books.

The bank still has the right to pursue the former owner for costs and
any outstanding balance from the foreclosure sale. (I know someone
facing that as we speak)
Read the terms of your mortgage it may even be spelled out there that
you agree to pay. That is likely if this is a post 2000 loan.

In any case you can get sued for just about anything in the US.
Bankruptcy will generally get you off the hook if you can take it.

If you can *get* it. Even bankruptcy is means tested. It's rare that the
borrower will get off completely.