<P> Both mortgage possession / repossession and foreclosure are quite similar, with the main differential being the treatment of any funds that exceed the amount borrowed . In the case of mortgage possession or repossession, if the home is sold or auctioned for a price that exceeds the loan balance, those funds are returned to the consumer . In the case of foreclosure, the mortgage company retains all rights to proceeds from a sale or auction . </P> <P> The UK foreclosure and mortgage possession / repossession system favors consumers over lenders, as the United Kingdom has some pre-action protocols in place . Mortgage companies are required to work with homeowners to arrive at a resolution and it is possible to delay court action (ultimately, enabling many to avoid the loss of their home) in situations where the borrower has enrolled in individual programs or if the borrower's income is about to improve significantly with a new job or other measures that would allow them to pay off the arrears . </P> <P> There is no precise parallel to an American short sale, although the UK does have a process known as Assisted Voluntary Sale . An Assisted Voluntary Sale does have some negative credit impact for the consumer, but the adverse effect is less pronounced than one might suffer if the case were to proceed to the courts . </P>

What does it cost to foreclose on a property