[Broke and ?]

We along with 50 million other Americans are really hurting financilly right now, my question is, what happens if you default on your Mortage and you have over 200,000 in equity in your home? If your foreclose does the bank automatcally get that equity? IE: If we sold for 550, and owe 385.....do we get that equity or does the bank get it?????

[me-the girl]

why would you foreclose on the house if you have so much equity ? Refinance and get that equity out !!!
Otherwise you wont see a dime if you foreclose.

[Tiare]

why would you let yourself get foreclosed when you have that much equity. sell the home and take a loss if you have to, but dont let it foreclose. if you foreclose, the bank gets EVERYTHING!!!!!

[Barry]

The equity is yours. And that is a healthy equity. Try to sell your house wisely before it goes into forclosure. You will get some of the equity back and keep your credit clean.

[mtgproaz]

The bank will keep what it is owed for the balance of the mortgage loan + any interest/penalties/legal fees/etc. You will be given the balance after the bank is paid off.

However, if you have that much equity... you are better off selling your home before the foreclosure takes place. If you are worried that your home won't sell quick enough to avoid foreclosure, then you could work with a Realtor in your area, who would be able to aggressively price your home to sell it fast (IE, your neighbor's home is the same model priced at $700k, then price yours at $680k). Yes, you will lose some equity - but you might be better off than paying all those legal fees that go along with a foreclosure. Not to mention, that you could save your credit. A couple of lates on your credit report won't look nearly as bad as a foreclosure on your credit.

You need to be proactive right now to save your equity and your credit. Good luck.