The housing bubble of 2008 plunged the country into a recession and has caused many people to lose their homes. However, it is not all bad news because there can be a payoff that some homeowners can look forward to: mortgage foreclosure surplus funds.
Many homeowners are unaware that they are entitled to cash from their foreclosed property after a foreclosure auction. Whenever a property is foreclosed because of an unpaid mortgage loan, it is then put up for auction by the lender. The foreclosed property is then sold to the highest bidder. The law states that the difference of the unpaid balance and selling price of a foreclosed property should be awarded to the prior most recent owner of the property. This difference is what is referred to as the foreclosure surplus or foreclosure refund. Although the amount of surplus money after foreclosure varies, it is often a big help for those people who are trying to start their lives in a new place – helping to pay for rent or a new down payment.
The previous owner of the property is usually notified by the state officials regarding their surplus funds from foreclosure after the sale is completed. California has specific procedures regarding how to claim surplus funds requiring certain forms that must be duly notarized with other supporting documents that must be included before submitting a claim. Because of procedural technicalities, filing for a foreclosure refund can be complicated, especially when there are other entities that also have claims to the property. In most cases, it is better that you consult with a professional who has a track record in processing surplus funds claims.
It is always best to consult a foreclosure lawyer to assist you in processing your foreclosure surplus claim. The professionals at Consumer Action Law Group are well versed in the different technicalities and issues that can arise when processing surplus funds claims. It is important that you find a firm with a good track record in processing such claims and expert in the various housing and foreclosure policies in your state.
Our law firm frequently files lawsuits against lenders after an illegal foreclosure. We will handle all the details with the courts and the trustee without charging you any fees up front.