Real Estate - Real Estate Investment

If your property is repossessed, you are still liable for all ongoing
costs that accrue until the lender sells your property. These costs
typically include mortgage interest, legal fees, estate agents, etc.
The lender will attempt to sell your property quickly to recover their
money. They typically use auctions and estate agents to sell your
property, often discounted to attract quick buyers. When the property
is sold, the lender’s account is cleared first. Any surplus will be
repaid to you. However, if there is any shortfall, the lender will
attempt to recover it from you for up to 12 years! (more on the consequences of property repossession).
Your mortgage lender will also provide credit agencies with your
repossession details. This credit black listing is stored in your file
for credit reference purposes for a period of 6 years.