Foreclosure costs in nonrecourse mortgage (5%, mortgage company, fees, accepting)

[REmOjO]

After a mortgage company forecloses on a nonrecourse mortgage for a house in Texas, the borrower is no longer on the hook for the loan, but per the terms of the loan the borrower may be on the hook for "reasonable attorney's fees" or other costs related to foreclosing on the property.

What is the typical foreclosure cost due by the borrower in this situation?

I'm guessing around $2,000.

[irish setter girl]

I'm not sure about the laws in TX but I just listed and sold a foreclosure home and the attorney fees to the seller were 12k. These fees were included in the payoff and for each week we didn't close the attorney fees went up almost 700k a week plus the payoff went up.

[CirclevilleGuy]

The general statistic i've heard is it costs banks an average of $20,000 to foreclose on a property. I do not believe this includes the agent/closing fees, it's mainly to do with contractors , winterization and attourney fees. The attourney fees can be extremely high due to many charging $250/hour for a foreclosure.

[REmOjO]

I'm having a hard time accepting that the attorney's fees (at least in Texas) for foreclosure are going to be a whole lot. Even at $250/hr, if an attorney is spending more than 8 hours on the foreclosure, then what the heck is he doing? I'd definitely audit that bill and require the lender to prove the attorney's fees are reasonable for the work necessary to be done.

I think the point about things like winterization and whatever else the lender may need to do to maintain the property would add to the expense.

Also a deed of trust sometimes has a provision that the trustee will take a percentage (e.g. 5%) of the foreclosure price as the trustee fee. Now THAT sounds potentially expensive. Whether that is enforceable or reasonable or not, I don't know.

Anybody else have an actual experience with foreclosure costs?