Banks

[Dutchy]

DA when banks sell up to get their debt back they dont make any profit, if there is any $ left over once the mortgage is cleared it is returned to the owner....trust me the last thing any bank wants to do is sell up someone, its a long legal process which costs plenty...selling someone up is the absolute last option...

I could be wrong Dutch but I would have thought that the bank is the owner of the property while the mortgage is being paid.

If it sells for less than you owe they still chase you for the balance owing. I think you are entitled to any balance left after they have recovered the debt and costs.

Correct Psyber......98% of the time it doesnt come to the bank taking possession of the house, common sense usually prevails and the owner sells it themself, becuase the bank is only interested in covering its debt a mortgagee in possession sale may result in a lower than normal price being obtained.

[Hondo]

DA when banks sell up to get their debt back they dont make any profit, if there is any $ left over once the mortgage is cleared it is returned to the owner....trust me the last thing any bank wants to do is sell up someone, its a long legal process which costs plenty...selling someone up is the absolute last option...

I could be wrong Dutch but I would have thought that the bank is the owner of the property while the mortgage is being paid.

You are the still the owner but the bank have security over the house. That means they must be paid first out of any proceeds on sale to recover their debt. Any money left over goes back to the owner. Also means you can't sell the house, keep the money and not pay-out the loan.

The Mortgage contract also gives the bank the right to force a sale in certain circumstances (rather, demand immediate payment of the outstanding debt - which means the owner has to sell immediately) but that doesn't make them the legal owner. Banks actually have a lot of power in a mortgage contract but Dutchy is right they would exhaust all other possibilities first before taking possession.