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If your home was sold at foreclosure auction above the amount due to the mortgage company what is the procedure to get the balance sent to you?
The purpose behind a foreclosure sale is to enable the lender to recover what you owe. You are entitled to any surplus funds after the lender recovers what you owe, pays all the fees relating to the foreclosure and pays off the balance of any junior liens, property taxes and municipal charges.
You need to check in the jurisdiction where the property is located to determine the procedure to claim the overage in your state. In some states the excess is turned over to a county trustee. In others a check is sent to the mortgagor. There are many cases where debtors had built up equity in their property and there are attorneys who handle this type of claim.
In Massachusetts for example, the lender must provide to the mortgagor an itemized accounting of the disposition of the proceeds from a foreclosure sale within 60 days of receiving those funds. The accounting must include any surplus due the mortgagor.
See the article at the link below that relates to overages.
http://www.denverpost.com/2011/03/07/money-owed-to-victims-of-foreclosure-rarely-gets-to-them/
What else can I help you with?
What is a junior mortgage on a property that includes the balance due on an existing senior mortgage called?
foreclosure
In a foreclosure, do you get your equity back?
In a foreclosure, you may not get your equity back if the sale of the property does not cover the outstanding mortgage balance and other fees.
Should you sue a title company for not paying your mortgage balance at closing which caused your house to go into foreclosure?
Notice should have been given to the homeowner by the mortgageholder letting them know that the balance on the mortgage had not been paid. At that point the title company could have been contacted and the matter should have been cleared up before the mortgage holder could finalize foreclosure proceedings. Therefore, I do not believe that the title company could have caused a mortgage foreclosure.
What is the minimum amount required to place an opening bid at a foreclosure auction?
The minimum amount required to place an opening bid at a foreclosure auction is typically set by the lender and is usually equal to the outstanding loan balance plus any fees and costs associated with the foreclosure process.
What happens when your home is in foreclosure and you have an equity line of credit on this home?
The line of credit is no longer usable and the bank that gave you the line of equity will be asking you to pay the balance. The mortgage holder will also be asking for the deficiency after the foreclosure auction. Alternatively, the banks may send you a 1099 early next year so you will owe taxes on the "forgiven" balance. Get a good bankruptcy lawyer. The law may change in this area when Congress comes back into session.
Are liens paid with foreclosure?
That depends on what the outstanding balance of your loan is, the value of your home, and how much the bank will settle for. There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.
Why am I being sued after foreclosure?
If it sold for less than you owe on the mortgage and costs associated with the foreclosure, you can be held responsible in some states for the balance. You might consider seeking advice from an attorney who works with homeowners who face foreclosure.
If you are behind on your mortgage will they keep your insurance claim?
If your home is in foreclosure then yes they apply it to the loan balance in the event you loose your home.
What happens to equity in a foreclosure situation?
In a foreclosure situation, equity refers to the difference between the value of the property and the amount owed on the mortgage. If the property is sold for more than the outstanding mortgage balance, the homeowner may receive the remaining equity. However, if the property is sold for less than the mortgage balance, the equity is lost and the lender typically keeps the proceeds from the sale to cover the debt.
How are lenders paid after a first mortgage foreclosure?
Lenders are paid after the property is sold. Hopefully they will receive at least the balance of what you owed on mortgage. If not they will be looking to you eventually for any deficient balance if they are not able to clear you debt totally through the sale.
Who owns home after filing a chapter 13?
It depends on what the chapter 13 plan provides. Most 13s are started to save a home from foreclosure, so the debtor remains the owner until the plan is completed. If the debtor misses post-filing mortgage payments, the mortgagee will file a motion for relief from stay to get the court's permission to proceed with the foreclosure. The plan can provide for the sale of the house, most often at auction, and the balance of the mortgage becomes unsecured debt to be paid according to the plan provisions for unsecured creditors. Or the plan can provide for the surrender of the collateral (home) to the mortgagee, with the same result for the mortgage balance.
After foreclosure is there a benefit of filing Bankruptsy?
After a foreclosure, the mortgage company or bank will send you a 1099-like form showing forgiveness of the balance due on the mortgage, including the costs of foreclosure. This is income to you and you will have to pay income taxes on that amount unless you file bankruptcy. You can also remove any unsecured debt that would otherwise make it harder to start over.
