Lost equity - Fact or myth?

luckyfool

silvercar wrote: »

A quick sale benefits the repossessed, as the arrears are much lower.

I would say it is a mixture of both. There is a reason people go out specifically to buy repossessions, and thats because they will tend to be cheaper. If someone is in a position where they can market and sell a property themselves to forestall a repossession then it is normally better to do that than to deliberately allow it to fall into repossession and leave it to the lender. Just my tuppence worth.

Radiantsoul

luckyfool wrote: »

In theory? In reality foreclosure is an American term, and the scenario can be as you describe it in the US. In the UK the Bank has a legal duty to you to get the best price reasonably possible, and can only deduct the owed amounts and expenses and must return the balance to the previous owner of the property.

Foreclosure is a British term that the Americans adopted.
The legal right to obtain the best price is based upon possession proceedings obtained under a possession order. Foreclosure is available as an alternative remedy to the provider of security.