Foreclosure in Queens>Question Details

Kevin, Both Buyer and Seller in Brooklyn, NY

Question for a friend who lost their home to foreclosure and the home was sold for more than they owed the bank. Can he get part of the difference?

Asked by Kevin, Brooklyn, NY Wed Dec 5, 2012

The home was sold for $200,000 when only $75,000 was owed. I wan't sure what to think due to him doing a deed in lieu with the bank. The deed in lieu was to stop the foreclosure process but the bank still sold for more than what was owed. Not sure if he has a case here unless it went to auction and was sold for more than the bank was owed legal fees. Advice would be helpful. Thanks.

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Hello Kevin. The deed in lieu does not stop a foreclosure. When a deed in lieu is executed, the property then belongs to the bank. Your friend should seek the counsel of an Attorney who specializes in Real Estate to better assist him/her.

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0 votes Thank Flag Link Thu Dec 6, 2012
Hi Kevin,

I think your friend should consult with an attorney on the merits of the sale. Without knowing all the circumstances I dont want to get to deep into the situation. However if there was only a $75,000 balance your friend should have let the bank know that he or she was going to sell it and they would not have pressed the deed in Lieu and your friend would have made something after the bank charged its late fees and missed mortgage payments and typical closing costs. Again it all depends on how long they were in foreclosure and the pertinent circumsatnces surrounding their finances and their reasons for the non payment of their loan. It seems as though something is not right with this because if the house was worth more than was owed it would seem a sale was the right thing to do or at minimum a refinace if your friend qualified. Lots of questions need to be answered. Good luck.
0 votes Thank Flag Link Wed Dec 5, 2012
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