The foreclosure process may be draining and discouraging at times. You’ve worked hard to find a home and pay off your mortgage, but we realize that things don’t always go as planned. However, the foreclosure procedure may provide you with a cash windfall in the form of surplus funds following the foreclosure auction.
How do you find out whether you’re eligible, and how does the application process work?
calculating the extra amount
The foreclosure procedure will take several months, but after the house is sold at trial, the total sum will be compared to the outstanding mortgage loan debt. If the amount is less than the remaining balance on the mortgage, the lender can launch a lawsuit in Victorville to recover the difference.
When the foreclosure selling price exceeds the total sum due on the mortgage, borrowers might gain. In this instance, the lender’s first move will be to utilize the extra cash to cover any expenses incurred throughout the foreclosure process. If there are any other liens on the property, the extra monies will be claimed by those lenders as well.
- The prior landowner would be entitled to the outstanding sum once the fees and any other liens are resolved.
- Making a surplus claim
- Victorville law governs the distribution of surplus cash following a judicial (foreclosure) sale. The surplus monies must be claimed by the previous owner through the court clerk.
- Before the transaction, the claimant was the owner.
- There are no outstanding debts on the property.
- The claimant has no outstanding unpaid judgments, tax warrants, liens, or homeowners’ association costs.
- There is no evidence that the claimant is bankrupt.
- The right to the mortgage excess has never been renounced or sold in the past.
- There are no other parties who are entitled to the surplus, or an agreement has been struck with those parties.
The final point deserves special attention. If another individual claims entitlement to the excess, such as a spouse or ex-spouse who claimed whole or partial ownership of the property through a divorce, the courts will gather to examine the merits of this claim.
Timeline
If the previous owner does not claim the monies within a year of the court sale, they will be regarded as unclaimed and will not be distributed. If you find yourself in this scenario, you must act immediately and file a claim before the deadline. If your lawsuit is still pending, the courts will disregard the one-year limit and continue to hear your case.
You should never go through the foreclosure procedure on your own. The pre-foreclosure attorney Victorville or Foreclosure attorney Victorville will be familiar with the requirements and will ensure that you receive any foreclosure excess monies to which you are entitled.