Upcoming Foreclosures

Do you lose your donwpayment if you foreclose on your house?

Hi - may be a dumb question but here goes. I am trying to save $50,000 for a downpayment on a two family in New York. (I can hear you laughing because everyone knows that it won't be much of a downpayment). Say a few years pass - and something occurs in whi ch I can't pay for the mortgage payment anymore. Do I lose the $50,000 I paid toward the principal if I lose the entire house to foreclosure? I know this sounds dumb...but I am trying to figure out if it is simply better to save my money in a government bond, and just rent for the rest of my life! The world economy is looking more sour by the day - and doesn't seem to be easing up any time soon. Thanks.

Public Comments

1. any money put towards the house would be then taken against the house in a foreclosure. any down payment would then be the banks after a foreclosure as far as i know. i currently had my family's house foreclosed and thats what happened at least. might want to wait for some more answers, but im pretty sure thats exactly what would happen.
2. YES. In the majority of foreclosures, the homeowner walks away with NOTHING. Sometimes they still owe, after deeding over home. Don't buy more home than you can easily afford. Don't overextend yourself. SAVE money. Reduce spending. BUILD your credit.
3. In order to recover the $50k, your house must sell at least for $50k more than the balance due on your loan at the time of the foreclosure sale.
4. If there is a foreclosure on the property, you would loose ANY money you have paid, whether it be down payment or regular monthly payments.
5. You loose everything in a fore-closer and sometimes still own if whoever takes the home sells it for less than what you still owe.
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