What is the process when the bank eventually sells the house?
This largely depends on how much the house eventually sells for. After all, the bank is only interested in recovering their capital and every last cent of it. If you have any equity in the house, then they are not obliged in any way to recover it. In most cases the bank fails to recover even their capital, which by the time they have reached a sale, will usually have reached fantastic proportions. Once they have received their money from the sale, they will advise you of the proceeds as well as of the difference between the sale price and how much you still owe the bank. The bank is obliged to pursue recovery of the shortfall, and will employ all the considerable legal means at their disposal to do so. This will mean more interest, more legal fees and could lead to the further hardship and an undischarged bankruptcy.
