Generally speaking, after a substitute trustee is appointed by the lender to foreclose on the property, a sale of the property is scheduled and noticed in a local publication. Usually, the debtor can pay the loan up until the time of the sale to prevent foreclosure. If the sale goes forward, the lender will open bids on the property for the amount due on the note. The high bidder will gain title to the property via a substituted trustee's deed once it pays the amount bid to the bank. If more money is collected by the lender than needed to satisfy the debt, the lender should tender the excess funds to the debtor (or the next creditor, if any). If there is a deficiency, the lender can sue the debtor for the difference.

The debtor obviously loses any and all right, title and interest in the property after foreclosure and must vacat the premises. Other than credit issues, including a blemish for the foreclosure (and assuming that there is not a deficiency issue), nothing else really "happens" to the debtor after a foreclosure is concluded. It will be very difficult to borrow money from any lending institution for mortgage purposes.

Please feel free to ask any follow-ups.