Question about foreclosure?

You live a house and are paying mortgage toward it, you've paid a good chunk already. But then, financially, bad things happen and your house is about to be foreclosed.

Do you get any of the "good chunk" back?

How does it work in comparison to normally just selling a house?

Gem - why ask ME a question, when obviously I don't know much about this?

What I asked you, is pretty much the same as you're asking me.

And, don't assume this is a situation I am in. Maybe I'm just curious.

Selling it yourself, you have control over the sale price. If the home is foreclosed, it'll probably be sold at a Sheriff's auction. The bank (or whoever foreclosed) will control what is an acceptable price. If that minimum is met, the auction sale will go through. If that minimum is high enough to pay off the main mortgage-holder, but not high enough to pay off a secondary mortgage, you can find yourself still owing money even after the home's been sold.

once house is sold
bank mortgage comes first
any other mortgages come next
whats left is yours.

Foreclosure is a last step when you cannot make your payment, and can't sell the house for what the mortgage is, and cannot make the bank whole. If you have paid a good chuck of your mortgage (there is good equity in the asset), you would probably sell and pay off the bank in full, with some leftover for yourself. Then you would avoid foreclosure, which you should do at all cost imho. tba

if bank forecloses, a lot of money goes to attorney and Realtor fees. they typically sell at break even point or lower to get the paper off books. In 20 years in this business, i have never heard of anyone getting money back after there home has went into foreclosure. Good luck.

If you have paid a "good chunk" why would you not sell it before it forecloses?

Homes are still selling, they just have to be priced right for the area and staged to sell.

My brother sold his home in 1 week in a small town in Michigan (where we have been in a recession for over 5 years).

Unlikely. Anything above the balance will be eaten up with various fees the bank will charge for the foreclosure.

You should look into selling the home and keeping the "good chunk" for yourself.