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.
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.
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.
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.
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....
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.
It sounds like you got the short end of the deal.
â‰ˆâ‰ˆâ‰ˆ Mott Marvin Kornicki, REALTORÂ® â‰ˆâ‰ˆâ‰ˆ
Aventura | Bal Harbour | Sunny Isles Beach
â‰ˆâ‰ˆâ‰ˆâ‰ˆâ‰ˆâ‰ˆ "â˜…â€ This is the House â€œâ˜…" â‰ˆâ‰ˆâ‰ˆâ‰ˆâ‰ˆâ‰ˆ