<P> In United Kingdom, foreclosure is a little used remedy which vests the property in the mortgagee with the mortgagor having no right to any surplus from the sale . Because this remedy can be harsh, courts almost never allow it . Instead, they usually grant an order for possession and an order for sale, which mitigates some of the harshness of the repossession by allowing the sale . </P> <P> The United Kingdom foreclosure system is unique and true foreclosures are quite uncommon . More commonly, lenders pursue a process called mortgage possession (or alternatively, "repossession" in cases where the bank originally sold the property too). </P> <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>

If there is a default on a mortgage the mortgagor after the foreclosure sale has the right of