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Home > Bank Foreclosure > Inside Bank Foreclosures > Bank Foreclosure - The Lenders Profits Bank Foreclosure - The Lenders Profits The goal of the foreclosing lender is to gain possession of the property.
The financial goal is the recovery of the principle loan balance, accrued interest, late fees, penalties, taxes paid on behalf of the property owner, court costs and attorneys' fees.
In most states, the laws are written so that the lender can only attempt to recover these widely accepted standard losses.
The lender will add in every legitimate expense when foreclosing.
This is what is sued for:
the total the lender claims is owed by the property owner.
In most states, this is the maximum amount the lender can collect.
The laws are written this way to protect home owners from unfair practices.
The commonly held notion that a bank (or any other lender) must sell a repossessed property for the same amount it cost to gain possession and therefore cannot make a profit is false.
If the foreclosing lender is the successful bidder at the auction, it will take possession of the property for the very first time.
When this happens, all the rules change.
The lender, now the legal property owner, can do anything it wants with the property, Rent it, keep it, whatever.
It can also sell the property for any amount it so desires Next :: Bank Foreclosure - Condition Of Title
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