if the bank sell my foreclosed home for more than i owed, am i intitled to the differance?

Asked by rumblebee39, Concord, CA Mon Jan 28, 2013

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Bob Georgiou’s answer
Bob Georgiou, Agent, Danville, CA
Wed Jan 30, 2013
I will add to what amouts to the same answer said 3 ways below that the lender incurs legal fees in a trustee sale that they will tack on their costs. I have heard that these run from 30k to 50k but don't take that gospel. I understand that if their is an overage that the seller may be intitled to, its unlikely that an owner would see it.
0 votes
Riverage92,

if the bank sells the property for less ..does that mean the people who had the house would have to pay the difference!?

No. But the person who defaulted will get a 1099-Misc from the bank for the amount the bank was "shorted" by the sale. This means the defaulter will have to pay taxes on the amount of the loan that was "forgiven".
Flag Thu Aug 31, 2017
The sale price includes the trustee fees. The trustee adds their fees to the lenders debt bid. It's usually 1.25% of the foreclosure amount (Give or take...In California). That assumes its a non judicial foreclosure. If there is an "Overage" (It's called excess sales proceeds), by law it goes back to the borrower. No one plays any games in this arena. People are sitting in prison that thought they could. It is what it is. If you are owed "Y", and it sells for "X", the excess goes back to junior lienholders, other liens and if any left over after, the borrower.
Flag Mon Dec 16, 2013
Ellie Waters, Home Buyer, Trenton, NJ
Fri Aug 18, 2017
The costs of the sale and the debt owed to the foreclosing mortgagee are paid first.
The mortgagee’s only interest in the property is to be fully repaid, however, so if any money is left over, the mortgagee doesn’t get to keep it.
The surplus is distributed to owners of junior interests in order of priority (which is generally the order in which the interests were created).
The sale extinguishes junior interests in the property, so these parties have a claim against the proceeds to compensate them for their loss.
Look at dummies dot com to read complete answer
The mortgagor gets to keep any money that’s left after paying the junior interests.
0 votes
jtbros13 if the property was acquired by the bank after foreclosure then are not entitled to anything. They acquired it via sale and the sale produced no "profit", they subsequently resold it for profit.
Flag Wed Nov 1, 2017
Ellie,

You are WRONG. A property is foreclosed via trustee sale, it is called a trustee sale because it is a sale. If no one out bids their minimum bid, which is almost always their UPB then they obtain the property free and clear. All lien older are wiped out. If they sell for a profit, they keep it all. I actually work for a lender and deal with foreclosed property.
Flag Wed Nov 1, 2017
Hi, this happened to me in January, who do we call to see if their was money left over or that it was fraud? I had about 200K in equity and didn't know it foreclosed until 3 months later. jtbros13@gmail.com
Flag Thu Oct 5, 2017
Metallica0303, Home Buyer, New York, NY
Fri Jul 7, 2017
My home was illegaly foreclosed on. I was in loan modification and bank still went through with foreclosure. I have done my due diligence and acquired all the documentation to prove all the illegal activities they did to take my childhood home and throw me and my daughter in the streets. I offered to pay what I was behind on and even offered to pay off the entire loan and they refused even that. Now I am finding it difficult to find an attorney to just look at what I have, I live in martinez and if there is an attorney that can help me please contact me. gardinerdylan63@gmail.com. in doing my research it is showing that the gentleman....not what I really want to call this person..,but this person during the whole foreclosure process I found some records showing he didn't even work for the bank during this time. The bank completely ignored foreclosure laws I was never notified of being in foreclosure was in constant contact with the bank about my situation. I was injure cat work and workman's comp was withholding pay. I found out from outside source stating a notice of default had been placed on my home so I contacted bank and week later received my notice 3 months after they put me in fireclosure. And worst of all come to find out the bank had no rights to my home at all. So please if there is anybody that can help me out finding a good attorney that's local to martinez that will look at my documents I would be very grateful! I am currently homeless and had to battle in court to not lose my daughter over this whole nightmare! Thank you
0 votes
Hi, this happened to me in January, who do we call to see if their was money left over or that it was fraud? I had about 200K in equity and didn't know it foreclosed until 3 months later. Did you ever find a solution? jtbros13@gmail.com
Flag Thu Oct 5, 2017
This exact thing happened to me several years ago!! I live in CA and I was in the loan modification program and the bank had their heads up their butts and didn't know what they were doing. I was calling every week or two , trying to get the proper paperwork sent etc. All of the sudden I call and that's when I find out they foreclosed on my house!!! We were still living in it and had no clue! Its crazy what they get by with. I got on the phone with Fannie Mae which was the govt. agency that backed my loan. If you had an FHA loan it is a Fannie Mae or Freddy Mac. I was actually able to get a person to listen to me and she was able to get the foreclosure reversed!!! It was a total pain and it took a lot of calls and proof etc. but our home was saved! If you have proof that you were doing everything right then try calling them directly. I handled it myself, no lawyer. Be diligent, don't give up!!! Keep making calls everyday until someone will listen!! Good Luck!!
Flag Thu Jul 27, 2017
Casanovamari…, Home Buyer, Concord, CA
Sat Jun 3, 2017
If i owe 59 thousand and my house sells for 110 thousand do i get the difference
0 votes
The costs of the sale and the debt owed to the foreclosing mortgagee are paid first.
The mortgagee’s only interest in the property is to be fully repaid, however, so if any money is left over, the mortgagee doesn’t get to keep it.
The surplus is distributed to owners of junior interests in order of priority (which is generally the order in which the interests were created).
The sale extinguishes junior interests in the property, so these parties have a claim against the proceeds to compensate them for their loss.
Look at dummies dot com to read complete answer
The mortgagor gets to keep any money that’s left after paying the junior interests.
Flag Fri Aug 18, 2017
The costs of the sale and the debt owed to the foreclosing mortgagee are paid first.
The mortgagee’s only interest in the property is to be fully repaid, however, so if any money is left over, the mortgagee doesn’t get to keep it.
The surplus is distributed to owners of junior interests in order of priority (which is generally the order in which the interests were created).
The sale extinguishes junior interests in the property, so these parties have a claim against the proceeds to compensate them for their loss.
Look at dummies dot com to read complete answer
The mortgagor gets to keep any money that’s left after paying the junior interests.
Flag Fri Aug 18, 2017
Rubenballi, Home Buyer, Concord, CA
Tue Dec 27, 2016
if the bank sell my foreclosed home for more than i owed, am i intitled to the differance?
0 votes
My dad died and was married i am only child wife got everything i got nothing no will was discovered there was money from foreclosure. I got nothing its been almost a year is it to late to claim now in florida
Flag Mon Aug 7, 2017
Kimberlyannh…, Both Buyer And Seller, New York, NY
Tue Oct 25, 2016
We sold our back to the bank last night and were told we may get some money sent to us, maybe. We couldn't sell it nor could we keep it. We avoided a foreclosure and that was worth it as we only had it for a year.
0 votes
Gil Dalva, Home Buyer, North Hollywood, CA
Tue Aug 11, 2015
My brother's home sold for 130k more than he owed, and after they paid taxes fees, etc... they paid him 90,000..... Only in America can you make money for not paying your mortgage. LOL
0 votes
Erikalyndon, Home Buyer, Concord, CA
Wed May 20, 2015
in some situations yes...after fees, legal fees, etc. are satisfied...we got $ back. We used a recovery service to do it...they charged nothing to do all the filing, work, etc. and took a % once it was settled. It was well worth it...but we live in TX.
0 votes
May I know the name of the Recovery Service?
As I understand this, the recovery can be done by mail or e-mail, thus location does not matter.
Thank you in advance.
Flag Thu Dec 28, 2017
This is true - I work for Texas Refund Recovery - and they don't tell you about unless you ask -Marie Ambrosia
Flag Thu Jul 20, 2017
do you happen to know how to locate such a service
Flag Thu Aug 18, 2016
Craig Lawler, Agent, Concord, CA
Mon Feb 18, 2013
No, sorry, but once the property is bank owned, it's now their property and it doesn't make a difference how much they sell it for on the open market.
0 votes
Yes, shocking that so few people on here understand this. The bank acquired the property via trustee sale. It is called that because it is a sale. All lien holders are wiped out from it, and unless their were gains via a third party bid at the trustee sale, the borrower gets nothing in the future.
Flag Wed Nov 1, 2017
wrong
Flag Tue Mar 14, 2017
you are an idiot.
Flag Sun Sep 25, 2016
Luis Ramirez-…, Agent, Walnut Creek, CA
Mon Feb 18, 2013
You can get some money back as mentioned below. Also some banks are paying you to Short Sell your home. Some banks will pay you up to $30,000 to cooperate with the bank and move.
0 votes
What if it's the other way around...if the bank sells the property for less ..does that mean the people who had the house would have to pay the difference!?
Flag Thu Jun 22, 2017
Konrad Ostac…, Agent, Concord, CA
Mon Jan 28, 2013
Yes and No... At the time of foreclosure Trustee Sale if somebody bid more on your property then the amount bank is trying to recover (your mortgage plus cost and fees) than you are entitle to the the money. If at the Trustee Sale nobody bids more then you own to your mortgage company then they (bank) "both" your home for the amount of your debt. The case is closed. Lets say the bank sell the same house 6 months later for more it has nothing to do with you. They are legal owner of the property and if they cash on a equity it is their gain. Sorry.
For more good information you can go to AccreditedBrokers.com
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Mon Jan 28, 2013
Now, if at the foreclosure auction, when it is sold, if the bank gets more than is owed then you would get some after fees and everything is backed out. But you said your foreclosed homes which is past tense meaning it already happened in which case it is no longer your home when sold.
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Mon Jan 28, 2013
No, if it was foreclosed it is no longer yours, it belongs to the bank now and if they can get more then it is there profit. My question is if they can get more than was owed why didn't you sell it when it was yours?
0 votes
Erikalyndon that is because the Bank didn't obtain the property. It earned a profit at the trustee sale, so it never went to the bank. You get the profits from a trustee sale. Not profits after a bank acquires and resells it.
Flag Wed Nov 1, 2017
not true...my husband had a house foreclosure with ex wife and we got money back...the house sold for a lot more than he owed
Flag Wed May 20, 2015
When we had a drive by shooting aimed at our neighbors next door we decided to part way with the house and the city.
Flag Mon Mar 30, 2015
No one would know ahead what it would sell for in an auction! Mine should have sold for maybe 100k! It sold for 144,000. Someone got a decent house in the worst area of north minneapolis. After legal fees and other things tacked on they sold it for 8,000 more than i owed. I am wondering if i can collect that money?
Flag Mon Mar 30, 2015
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