First: This is hypothetical, more of a curiosity than something I need actual help with.
Lets say I had a 100k house, and over the past 10 years I’d paid down 50% of the value of the house — That is to say ignoring interest, I own 50% and the bank owns 50%.
If I were to lose my job and get foreclosed, the bank probably wouldn’t be interested in busting out a chainsaw to cut the house in half — they’d take possession of 100% of the property.
Would the bank at that time (or any other) have to pay me back the 50% of the house I own? If not, how would this be handled?