If a foreclosure sale results in excess proceeds, the lender doesn’t get to keep that money. The lender is entitled to an amount that’s sufficient to pay off the outstanding balance of the loan plus the costs associated with the foreclosure and sale—but no more.
What is foreclosing a mortgage?
A foreclosure is the legal process where your mortgage company obtains ownership of your home (i.e., repossess the property). A foreclosure occurs when the homeowner has failed to make payments and has defaulted or violated the terms of their mortgage loan.
What happens to equity in foreclosure?
In Foreclosure, Equity Remains Yours If you cannot get new financing or sell the home, the lender can sell the home at auction for whatever price they choose. If the home does not sell at auction, the lender can sell the home through a real estate agent. Remember that equity is what you own of your home’s value.
What happens to excess proceeds from a foreclosure sale?
But the last known address is usually the foreclosed property. Because most people don’t realize they’re due any excess proceeds, they tend to vacate a foreclosed property without leaving a forwarding address. So, it’s difficult for a trustee or other sale officer to find foreclosed homeowners after a sale.
How does an extra-judicial foreclosure of mortgage work?
2. Upon receipt of an application for extra-judicial foreclosure of mortgage, it shall be the duty of the Clerk of Court to: a) receive and docket said application and to stamp thereon the corresponding file number, date and time of filing;
What happens to the house after a foreclosure?
After a borrower defaults on mortgage payments, the lender (or the subsequent loan owner) will likely foreclose. Most foreclosures end in an auction where the property is sold to a new owner.
When is equity of redemption due in a foreclosure?
The defendants are entitled to equity of redemption in judicial foreclosure proceedings-that is, they may pay the amount ascertained by the court to be due upon the mortgage debt, including interests and other charges, and costs to the court or plaintiff within a period not less than 90 days nor more than 120 days from the entry of judgment.
