How to Get Your Share of the Extra Money Left Over After a Foreclosure Sale
Many people, at some point in their lives, may experience the thrill of closing on their very first house. However, so are tough times, and foreclosure is a part of those. You must know how to claim foreclosure overage if you go through the process of foreclosure. When a borrower falls behind on their mortgage payments, the lender can foreclose on the property. Different states have different procedures. In most cases, however, the lender will seize the property and force the borrower to vacate. The lender then sells the property after the eviction in an effort to recuperate its losses. This procedure typically takes about 60 days to complete in the state of Texas. That’s after accounting for the state’s mandated notification periods. Borrowers who choose to challenge foreclosure in court are able to extend its duration.
If you want to learn more about how to profit from foreclosure sales, read on. Here’s a quick rundown of the steps you need to do to collect any leftover money from a foreclosure sale. Foreclosure auctions are handled differently in each state, as previously mentioned. Usually, the sale will be handled by a court officer. This occurs when the foreclosure process is determined to be either nonjudicial or judicial. Based on this category, the foreclosure procedure will either be handled out of court or not at all. There is no judge or court official involved in a nonjudicial foreclosure. The home will be auctioned off, either online or in person. Most auctions today are conducted online, thanks to the convenience and efficiency of modern technology. It will be up for bid by the lender and possibly others. Excess proceeds refer to the amount of money made from the sale of a property that is greater than the remaining loan debt.
The typical homeowner has no idea what to do with any potential surplus funds. When a home is foreclosed upon, the owners usually clear out the contents and move on. In the event of surplus funds, the trustee or court official must inform the debtor. The issue here is that the homeowner’s previous residence will receive the notice of any surplus funds. You can find the foreclosed home at that address. Because the trustee is unable to track down the borrower, the proceeds from most foreclosure auctions are never collected. Leave a forwarding address and follow the foreclosure of your home with interest.
Lenders are not entitled to any leftover funds from a foreclosure sale. The most they can get back is the original loan balance plus any fees accrued due to the default. When no judgments or liens exist against the property, the borrower is entitled to the surplus funds. In other words, the cash belongs to you. Facing foreclosure is a challenging ordeal. Foreclosure overage may be lost if the homeowner is unaware of the process. Just do what we say. Investigate your rights after the sale of your property. In danger of losing your home to foreclosure? Consult an attorney or other knowledgeable person today to learn more about your options.