Rich, Real Estate Pro in Colorado Springs, CO

What happens to the overbid at foreclosure auctions?

Asked by Rich, Colorado Springs, CO Wed Mar 30, 2011

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9
what happens to the overbid at foreclosure auctions in massachusetts?
0 votes Thank Flag Link Tue Jan 29, 2013
Also, if there is only 1 lienholder, the excess is supposed to go back to the homeowner and yes this has happened in Colorado Springs. Sometimes a homeowner has equity when foreclosure starts, and they just choose not to sell the house. It doesn't happen often, but does happen.
0 votes Thank Flag Link Thu Mar 31, 2011
An overbid isn't the result of overpaying; rather, it's the result of paying more than what was owed to the foreclosing entity (which is often the first lien-holder, or the city/county [for a tax sale]).
0 votes Thank Flag Link Wed Mar 30, 2011
Its gotta sell for appraised value if there is a loan going on it. That will prevent over paying. Watch out cash buyers!
Web Reference: http://EveryListingNow.com
0 votes Thank Flag Link Wed Mar 30, 2011
Also, if none of the interested parties file their claim within the prescribe amount of time, then that amount gets escheated.
0 votes Thank Flag Link Wed Mar 30, 2011
This was a good Question and Joanna Seemed to answer it well.
Brian
0 votes Thank Flag Link Wed Mar 30, 2011
Joanna Jensen has the correct answer. For any lien holder to get the money they must file an intent to redeem. If they don't file, then they don't get the money no matter what jr position they are in.

Bill Forsythe
Re/Max Properties, Inc.
0 votes Thank Flag Link Wed Mar 30, 2011
Hi Rich,

Depends on if there is a second loan on the property.

If you bid more than what is owed to the first it will go to the second.

If the first and second are paid off as well as fees etc. Any overage may go into a fund then overage will go to the previous home owner.

Joanna Jensen
Legal Assistant
Volo Law


not intended as legal advice
0 votes Thank Flag Link Wed Mar 30, 2011
Are you going to bid at the Wed auctions at the courthouse or online? If you bid at the courthouse, you have to bid higher then the banks offer which you should know.
0 votes Thank Flag Link Wed Mar 30, 2011
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