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My question should have been "is it possible to find out the amount owed on the property when the bank repossesses it".
I found it. I think. But why wouldn't the owner sell the property at a loss and get out of debt before allowing it to be repossessed? In the situation I am referring to, the owner tried unsuccessfully to sell the property at market value.
I know nothing about real estate transactions. The lack of response here suggests to me that this is a foolish question. I think there must be something obvious here that I don't see.
My question should have been "is it possible to find out the amount owed on the property when the bank repossesses it".
You can usually find out the amount of the original mortgage since that amount would be in the public records...and you can estimate what might still be owed given a typical amortized payment schedule. But, if you see the advertised foreclosure sale, the minimum bid amount is oftentimes the amount which was owed on the mortgage at the time of foreclosure.
My question should have been "is it possible to find out the amount owed on the property when the bank repossesses it".
I found it. I think. But why wouldn't the owner sell the property at a loss and get out of debt before allowing it to be repossessed? In the situation I am referring to, the owner tried unsuccessfully to sell the property at market value.
I know nothing about real estate transactions. The lack of response here suggests to me that this is a foolish question. I think there must be something obvious here that I don't see.
It may depend on your location.
In NJ, which is a Judicial Foreclosure state, you can find it in the court documents. When the foreclosure auction is advertised, as the law requires, the "Judgement amount" is listed. That's the amount the bank is owed, and the reason for the foreclosure action.
If the owner wants to sell the property, they need to pay the lender back the outstanding amount. The lender doesn't care if the house is sold for more or less than the amount owed. If the market value of the house isn't sufficient to cover that outstanding amount, the borrower need to somehow come up with the difference. If he can't, he might ask the bank to accept less than the full amount. That would be a short sale, if the lender agreed to it.
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