The mortgage lender issues a 1099-C Cancellation of Debt form to your spouse for the remaining balance of the loan. Depending on your circumstances, this debt is considered taxable income by the IRS and could increase the total amount of taxes you pay.

What happens when you have a foreclosure on Your House?

The legal proceeding is known as a “foreclosure,” and will result in the loss of your home, foreclosure fees, additional legal fees, and possibly a deficiency judgment if your outstanding liens exceed the current value of your home. Your credit will also be shot when all is said and done.

What can I do to avoid foreclosure on my house?

Another option is a deed in lieu of foreclosure, which allows you to sell your home back to the bank that financed your mortgage. It is a great way to avoid foreclosure proceedings, but again results in the loss of your home. It must be voluntary, and both parties must act in good faith.

Where are foreclosure listings in the United States?

Las Vegas foreclosures. Miami foreclosures. Atlanta foreclosures. Chicago foreclosures. Houston foreclosures. San Diego foreclosures. Orlando foreclosures. Charlotte foreclosures.

Can a person be kicked out of a house after foreclosure?

You cannot be kicked out of the property the day of the auction. In all cases, you have a right to recover excess money beyond what is owed on your debts after the sale of the property. After the lender files the Notice of Default, you are officially in the foreclosure process.

Do you still have rights after a foreclosure?

Foreclosure eliminates all your property rights as far as ownership of the residence. However, you still maintain some rights during foreclosure, after the auction and as the tenant.

What happens to the money after a foreclosure auction?

Any overage is paid directly to you — if there are no other liens on the property. If you have other liens on the property such as a home equity line of credit, the money goes to pay the balance due on that loan. The new owner cannot change the locks on the property after the auction. After the auction, you become a tenant in the property.