Home Buying in San Jose>Question Details

Lovesvintage, Both Buyer and Seller in San Jose, Jacksonville...

My house sold at foreclosure for $33,000 more then I owed the bank.I was only in arrears for this year in tax's (about $4,000)Doc's are

Asked by Lovesvintage, San Jose, Jacksonville, FL Wed Feb 10, 2010

probably another $5,000 so what happens to that other money... and how come I can't seem to get a straight answer on this ...or a closing statement from B/A ? There were no other liens on it.Does the bank just absorb it ?
In other words was I robbed?

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Billy Burke, CAI - AARE’s answer
OK, let me get this straight, I am the full time real estate auctioneer in the crowd.

Your house was sold at the public foreclosure auction, usually held on the courthouse steps.

At the foreclosure there was an overage of $33,000.00 above and beyond the amount claimed by the lender that was offering the property at public auction to recover the amount they loaned you and you did not pay.

is that correct?

If so you are entitled to the overage, minus reasonable and fair legal and processing fees that should have been disclosed in the legal foreclosure documents provided prior to the auction.

You do not need a lawyer to claim the overage.

By law the lender is offering your house at public auction to collect the amount you owe, the property was yours until the time the gavel went down to the high bidder.

By law a lender may only keep what they are owed but often they prey on the ignorance of the consumer and do not forward documents that show how to claim your money.

If you look at the foreclosure documents they were prepared by a law firm specializing in foreclosure.

Simply call them attorney named on the documents and ask for a copy of the memorandum of bid & deposit receipt and if there is a special form you need to complete to get a check for the overage owed to you.

Be civil and polite on the phone because the legal secretary you deal with can make it easy or make it the hell of the lawyers for you.

Now if the bank foreclosed on your house because you did not make the payments as agreed, took title, then sold it to someone for $33,000 more than you owed you are sol...

The overage only applies to purchase money from a 3rd party buyer at the legally required public auction that 100% of properties being foreclosed upon must go through.

Did you know that professional real estate auctioneers are locked out of the foreclosure auction process due to regulations dating back to FDR's new deal?

Foreclosure auctions are managed by bankers & lawyers so they take our job of dealing with the public and make it real complex.
3 votes Thank Flag Link Fri Apr 16, 2010
What happens if I filed for chapter 13, stop paying my mortgage, house is foreclosed and sold for more than what I owe.. what happens to the overage monies? Will I be entitled to receive it after all fees by the courts are paid?
Flag Thu May 10, 2012
Reading the answers below, so far you've received some pretty bad advice. In FL, YOU ARE entitled to any surplus remaining after foreclosure. Additionally, you DO NOT need an attorney to do this for you, you can do it yourself. However, there are time deadlines and you should inquire directly with the county court that handled the foreclosure. If you do need an attorney to assist you with this, please give us a call or email. Thank you. Whatever you end up doing, act quick, because there are time deadlines to get your money!!!!! (I am an attorney and broker/owner of SELLRENT real estate).
2 votes Thank Flag Link Wed Feb 10, 2010
3895we filed chapter 13 may 3,2015 and the lawyer fail to mash the send button to go to bankruptcy court until it went back to the bank a month later now we are left with nowhere to stay and don know when we will have to go.in 2007 the house was appraised at 154,000 we owe 132,898 they say so do we receive balance overages
Flag Tue Jun 23, 2015
my home was also sold for $20,000. over what I bought it for. I had no idea I could be entitled to the overage. Is it too late to check into this, it's been 10 years since it was forclosed on and auctioned. ROzanne
Flag Sat Jul 27, 2013
The overage is usually held in the court registry. You can get a claim form from the Clerk of the Court and claim the overage as yours. You are legally entitled to it.
1 vote Thank Flag Link Fri Feb 12, 2010
The bank sold our foreclosure for $124,900 and we only owed the bank $79,000. Who gets the remaining money?
0 votes Thank Flag Link Tue Jan 20, 2015
Check with your taxing district. They may have the money sitting in their overage account waiting for you.
0 votes Thank Flag Link Thu Jun 19, 2014
I need help with finding overage for my fahter foreclosured home . Can soomeone tell me how can i get my father money for him? I live in cleveland, Oh. Thanks
0 votes Thank Flag Link Mon Nov 18, 2013
I've done this before after you talk to the lawyer email me at slle810@gmail.com and I will tell you what to do..
0 votes Thank Flag Link Fri Feb 1, 2013
to whom,

i had the same issues and my family were the ones that bought back and they charged $47,000. more then what i owed on note! i guess they made out on me too!!
Web Reference: http://hotmail.com
0 votes Thank Flag Link Mon Mar 7, 2011
Yes Michael is correct on this one the overage is held in the court registry. You claim the at Clerk of the Court office you are legally entitled to it.But beware of companies who try to charge you a fee to do the work for you
these people get a list of the overages and contact the homeowner who most of the time do not know they have money owed to them and the charge a fee as much as 40% to collect this money for you.
0 votes Thank Flag Link Thu Dec 23, 2010
However, if it weren`t for those people, its possible that the former homeowner never would have known they had money owed to them by the government. Its better to get 60-70% of your money, than to not get any of it. Those people are providing a service and should be rewarded accordingly.
Flag Mon Dec 16, 2013
This is usually not the case, but you have to take into consideration that the banks also charge late fees, lawyer fees, interest on the late fees, etc. So although it sold for more that your loan was-the could have possibly broken even or had a smaller profit.
0 votes Thank Flag Link Wed Aug 4, 2010
Billy's answer below was very informative. I have originated loans for over a decade but did not know all that much about the auction process - thanks Billy.

I would suggest a call to a dependable RE attorney. I can recomend Glenn A Taylor in OP or Richard Morehead in the Jax Beach. Both are relaible, smart, and experianced.

Good Luck

0 votes Thank Flag Link Thu Apr 22, 2010
Oh, I have to own up to my mistake. Sorry.

I checked with two lawyers that I usually work with and they both said in a non-judicial state (that is the type of state in which they both practice), the home owner is entitled to the proceeds beyond the note plus costs to foreclose and sell at trustee sale. After the trustee sale, if the bank subsequently sales the house, that is the banks because the homeowners interest has been dissolved.

For a judicial state, don't know.

Go get em.
0 votes Thank Flag Link Thu Feb 11, 2010
Contact an attorney for a initial free consultation, and take it from there.
Good Luck!
Genevieve Ramachandran
Punta Gorda Realty
0 votes Thank Flag Link Thu Feb 11, 2010
I believe that you are entitled to the difference between what the net to the lien holder(s) (in full, and including expenses) and the sales price ended up being. Just as if a person who has completed a deed in lieu may be asked to pay the difference between the net to the lender and the amount of the loan (reverse of what your experiencing).

I am just about certain regarding this one, but also am not an attorney and as such am relying on my Realtor school:-) I would contact a real estate attorney. Wish you the best in this....
0 votes Thank Flag Link Wed Feb 10, 2010
When it was foreclosed on, the house was no longer yours. At that point you had no interest in the home. The bank just made a profit by foreclosing on the property.

To make things worse, you probably could have sold the house on the open market for less than market value and walked away with that $33K in your pocket.
0 votes Thank Flag Link Wed Feb 10, 2010
Sounds like an odd situation- I guess the demand and or value was higher than even the lender thought. Once the property is foreclosed and title transfers via the legal system- the lender can sell for whatever they can get. I'm not sure that the lender is obligated to "refund" the overage. I'm sure that there were legal fees incurred by the lender as well.

It sounds like you got the short end of the deal.

≈≈≈ Mott Marvin Kornicki, REALTOR® ≈≈≈
Aventura | Bal Harbour | Sunny Isles Beach
≈≈≈≈≈≈ "★” This is the House “★" ≈≈≈≈≈≈
0 votes Thank Flag Link Wed Feb 10, 2010
You may wish to ask your question to an attorney specializing in real estate--most professionals do offer a free consultation.
0 votes Thank Flag Link Wed Feb 10, 2010
Sounds like it. BoA? Get a lawyer, tomorrow.
0 votes Thank Flag Link Wed Feb 10, 2010
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