Online House Hunting

What happens when you buy a house and then it is foreclosed on?

say for example you buy a house for 700,000 and the house forecloses and the house sells for 450,000 in foreclosure, what happens with the difference of 250,000.does the bank eat the loss?

Public Comments

1. The government right now is asking the banks to eat the loss. which to my knowledge they are doing. If we were talking about 6 months ago, the answer would be -- the bank would come after you for the additional 250,000.
2. Yes.