Upcoming Foreclosures

What happens to my interest in my home in a foreclosure sale?

if my home is sold as a foreclosure and there is a profit from the sale....does the bank owe me that money?

Public Comments

1. if there is a profit when the house is sold at the foreclosure sale then you may be done some money. However, once the court rules that the sale is legal and the bank then sells the house to the new owner, then NO you are no due any money.
2. After all the legal fees connected with a foreclosure are deducted then there will be NO profit. But if there is profit to be had why are you in foreclosure, sell the thing for the exact loan amount and don't ruin your credit.
3. The foreclosing bank should, or must, provide you with a complete accounting with respect to your loan balance, accrued interest, and the costs of foreclosing your mortgage, which includes the attorneys fees related thereto. If there is a surplus after the first mortgage is foreclosed, then the surplus must be applied towards the second mortgage or the next secured creditor, if any. I want to be clear. If the sale that you are referring to is not a foreclosure sale, then you are not entitled to any share of the bank;s profit. In other words, if the bank purchased your home at foreclosure for $200,000, and later sells it for $230,000, that $30,000 gain is all theirs to keep. If, however, your home sold for $230,000 at the foreclosure sale and you owed $200,000 on your mortgage and you had no other secured debt, then there are probably some net proceeds that should be paid over to you. If you are in doubt, then request an accounting from the lender.