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.
if there is a default on a mortgage the mortgagor after the foreclosure sale has the right of
proceeds from a sale or auction