Foreclosure Refunds Recovery Have you received the money you are entitled to? Our expert team specializes in locating and recovering overage or surplus funds that remain after a property foreclosure sale. By auditing hundreds of government agencies throughout the entire country we can locate these funds and notify the rightful
owners of their existence.
The claim process can be complicated, but we are here to help you claim this money which is rightfully yours.
What are Surplus Funds?
You may believe that a foreclosure sale is the end of the story, but that isn’t the case. Lenders may choose to set starting bids to include the cost of the mortgage AND additional interest. This can mean that a property is sold for a higher price than the remaining balance of the mortgage loan, and the excess amount is known as surplus funds.
As a mortgage is a legal agreement, homeowners are required to pay the full amount of the mortgage to the lender. If the foreclosure sale does not cover the full amount, the homeowner must make up the difference. However, if the foreclosure sale recovers more than the remaining balance of the mortgage, the lender may be obliged to return the surplus funds.
This isn’t an automatic process, and the state specifies the period of time you have available to reclaim these surplus funds. As the previous homeowner, you may be entitled to 100% of the surplus funds, but if you don’t act quickly enough (or don’t file a surplus money claims at all) other parties may file the claim. These may be tax lien holder, second mortgage holder, credit card lienholder, etc.
A court hearing will determine who is entitled to the funds and there is usually an order of priority. Subordinate lien holders will usually gain first access, followed by second mortgage lenders, with the previous homeowner being last in line.
If this money is not claimed within a year, the surplus funds are considered to be “unclaimed property” and will usually be given to the local or state unclaimed monies division – and you’ll never see it again. Banks and other lenders will not usually notify individuals of the existence of surplus funds which means that in many cases, they go unclaimed. After a foreclosure, you may not be aware that there are surplus funds available, and you may not feel emotionally ready to pursue them – foreclosures can have an impact that is more than just financial.
Despite this, courts are required to attempt to notify the previous homeowner of surplus funds, but not every court will have access to a forwarding address. These funds are rightfully yours, but it is your task to track and recover them.
It’s not easy, and there are many difficulties along the way, not the least of which is a large amount of paperwork to complete. Our team is here to help you, and we are ready to assist you in recovering the surplus funds that are owed to you.
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