Behaving vindictively can result in fines or even criminal charges. The lender or trustee might even decide to sell a damaged, run-down property for a lot less than what the borrower owes. You want the home to be in optimal condition, so that it will sell in foreclosure for the greatest amount and reduce your debt as much as possible. DEFICIENCY JUDGMENTS Following the foreclosure sale, whether the property is sold as an REO or to a new individual owner, the courts may grant a deficiency order against you if the sale price fails to cover your mortgage balance. For example, if your mortgage balance was $370,000 and the house sold for only $350,0000, the lender could ask the court’s authorization to collect the $20,000 difference from you.
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