Posted by David on December 15, 1999 at 21:47:13:
In most states at the sheriff/foreclosure/etc. sale the bid in excess of debt would go to the former owner.
After the sale when its an REO, the bank can and does keep anything that they might make. In my experience they don’t make anything on the overwhelming majority.
The properties are often poorly maintained, deferred maintenance etc. and the debt is high or exceeds the value when you consider taxes and municipal leins which take precedence.