It costs a bank how much money to process each foreclosure?

There is a rule of thumb that says lenders can face losses from the loan default and subsequent foreclosure that equal up to 40% of the loan amount. The actual costs will vary based on the type of home, the state where it is located, the process the lender uses and other factors. Hence the costs can vary a lot from one lender to another and from one property to another. In some states the lender can come after the borrower for any losses (deficiency judgment) while in other states the lender more or less is blocked from doing so. It is mostly decided at the point the loan is taken out as the loan documents will state what a lender can and cannot do unless there was fraud when the loan was applied for. That is why a borrower really should read the loan documents.