Posted by chris on April 04, 2000 at 02:53:54:
You may want to check how this works in your state with foreclosure investors or a foreclosure atty.
I believe in some states that the homeowner does not get the excess amount-the lender, if the high bidder would get to keep whatever profit they make during the resale(REO). If it is a high equity situation and the lender is outbid then the homeowner would get the excess after late fees,atty fees,etc. are totaled. Homeowners have a lot of ideas about how their situation will magically turn around at the last minute-another reason they are stubborn.
Check this out-http://www.nothingdown.com/Pages/braindropping_8.html