Foreclosure and Judgment and Sale. Now what? Very Confused.

[david_weaver]

Here is a scenario:

 

Home foreclosed.

 

BofA sues homeowners, awarded judgement for $215K ($190K loan balance plus fees).

 

Fannie Mae takes ownership of home for $1000.

 

Fannie Mae sells home for $175K.

 

Court still shows judgment due to BofA unchanged at $215K.

 

What am I missing?

 

I would think BofA was made whole (except for maybe the fees) by Fannie Mae, as it was an FHA mortgage?

 

So how is it that BofA got paid $190K by Fannie Mae to make them whole AND BofA still has a judgment showing they are owed $215K from homeowners?

 

Should not the judgment now reflect only the difference between what the judgment was when entered and what the remaining difference is now, and not the whole amount?

 

In other words, if the judgement gets paid today, BofA will have pocketed $405K for a $190K loan.

 

Or, am I WAY confused over how this works? Would appreciate an explanation.