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Foreclosure Equity Calculator: What You'd Actually Walk Away With

Everybody in this business will tell you what your house is worth. Almost nobody will tell you what's left after the payoff, the back payments, the attorney fees, the commission, and the repairs a buyer's lender is going to demand. That last number is the one your decision actually turns on.

So here it is, side by side, with the math showing. Cash sale versus listing versus letting the sale date come and go.

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What's actually left after the dust settles?

The timeline tells you when. This tells you what's left. Put in your real numbers and you'll see what a cash sale nets you, what a traditional listing nets you after commission and repairs and three more mortgage payments, and what you walk away with if the house sells at the foreclosure auction. Nothing gets saved and nothing gets sent anywhere.

What the house would sell for fixed up

Your honest guess is fine. Look at what similar houses on your street actually closed for, not what they were listed for.

Loan payoff balance

The full amount owed on the mortgage. Ask your servicer for a written payoff quote — it's not the same as your reinstatement amount.

Back payments, late fees, and foreclosure costs

Everything you're behind, plus attorney, trustee, and publication fees the lender has added.

Repairs a retail buyer's lender would require

Roof, HVAC, foundation, deferred maintenance. If you're not sure, most tired houses land between $15k and $40k.

Monthly mortgage payment

Used to estimate what it costs to carry the house while a listing sits on the market.

Second mortgage, HELOC, tax or judgment liens

Anything else recorded against the property that has to be paid at closing. Leave at 0 if none.

Value and payoff are the only two we truly need.

Why the equity number in your head is usually wrong

Most people carry around a rough figure: the house is worth about this much, we owe about that much, so there's about this much in it. The figure is almost always too high, and it's too high for boring reasons rather than dramatic ones.

The payoff is bigger than the balance on last year's statement, because interest and escrow advances kept running. The arrears are bigger than the missed payments, because late fees, property inspections, a broker price opinion, attorney fees, and newspaper publication all get billed back to you once the file goes to foreclosure. And the value is usually the fixed-up value, not the as-is value of a house where the roof has been patched twice and the HVAC is on borrowed time.

None of that means you have nothing. Plenty of homeowners we talk to have real money in the house — they just don't know how much, so they freeze, and freezing is what actually costs them. Getting to a real number is the whole point.

The three outcomes, straight

A cash sale pays less per square foot. That's the honest trade. What you get for it is no commission, no repairs, no showings, no appraisal, no financing contingency, and a closing date you can set before the auction. For someone six weeks from a sale date, that's not a discount — that's the difference between keeping your equity and losing all of it.

A traditional listing gets the highest price and is the right answer more often than investors like to admit. If you've got ninety days or more, the house shows well, and you can carry the payments while it sits, list it. We'll tell you that on the phone. The catch is what the calculator shows: commission and closing costs run roughly 8%, repairs come off the top, and every month on market adds a payment plus more arrears.

The auction is the only one with no upside. The lender credit-bids the debt, you get nothing, the foreclosure sits on your credit for seven years and shows up on every rental application you fill out afterward. If you're underwater, a lender may in some circumstances pursue the remaining balance afterward. Whether that happens depends on your loan, your state, and your specific facts, so ask an attorney about your situation.

Not sure where you are in the process? Start with what happens after you fall behind, then come back to the money. And if you're still deciding whether selling is even the right move, we walked through the options here — including the ones where we're the wrong call.

Common questions

How do I figure out my equity in a foreclosure?

Start with what the house would sell for fixed up, then subtract the full loan payoff, everything you're behind including attorney and trustee fees, and any second mortgage, tax lien, or judgment recorded against the property. What's left is your equity on paper. Nobody hands you that number at closing though — commission, repairs, and closing costs come out of it first.

Do I get any money if my house is sold at a foreclosure auction?

Almost never. In practice the lender credit-bids what it's owed and no third party outbids it, so no cash changes hands. If a surplus does exist it goes to junior lienholders first, and whatever equity you had in the house is simply written off. That's the single most expensive outcome available to you.

Does a cash offer really beat listing with an agent?

Sometimes, sometimes not, and anyone who tells you it always does is selling something. A listing gets full market value but costs you roughly 6% commission, 2% closing costs, whatever repairs a buyer's lender demands, and two to four more mortgage payments while it sits. Run both numbers. If the gap is small and you have a sale date on the calendar, certainty usually wins.

What if I owe more than the house is worth?

Then neither a cash sale nor a listing pays the loan off by itself, and the conversation shifts to a short sale, a loan modification, or a deed in lieu. A negotiated short sale can include a written release of any remaining balance, which an auction generally will not. Whether a lender can pursue that balance, and for how long, depends on your state and loan, so ask an attorney.

Is this calculator saving my information?

No. The math runs in your browser. Nothing is stored, nothing is sent to us, and no email is required. If you want a real number on a real address, that's a separate conversation you start on purpose.

Related foreclosure guides

Same situation, more detail — state law, county procedure, and the options you still have.