What happens to the equity I have in my house?

The equity that you have in your house remains yours even through a foreclosure though it will likely be reduced. You will still owe your missed payments and any late payment fees will be added to the total loan amount. The lender can also charge fees related to the process of the late payment, foreclosure proceedings and expenses for the sale of the home. These fees will likely be subtracted from the final amount owed to you after the home is sold.

Once your home sells at a Sheriff’s sale to the highest bidder, your loan will be paid in full along with any additional fees charged by your lender. The remaining amount after the loan and fees are paid off is your remaining equity.