[lbo-talk] Another ignorant question on my part

[Carol Spooner]

Most states have a law limiting the mortgage holder to the amount they get 
from foreclosure sale.  (I believe all states have such a law, but am not 
certain.)  The house is their sole security for the loan, and that's all 
they get -- up to the amount of the debt.  You are entitled to any $$s from 
a sale over and above the balance on the mortgage and costs of sale.

--Carol

At 07:53 PM 12/13/2004 -0500, you wrote:
>So, about this housing bubble: Let's say I default on a mortgage and the 
>bank takes the property, and after they sell the property, they only get 
>half of what I owe them. What happens to the other half of the debt?
>
>All the best,
>
>         John A
>
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