With the recent increase in housing prices, we are seeing more homeowners with equity being foreclosed than ever before. In some cases, the homeowner has $150,000 or more in equity on the mortgage at the time of foreclosure. If the property sells at the foreclosure auction to a third-party bidder for more than the balance on the loan, the original homeowner is entitled to the surplus funds. Actually recovering surplus funds from your lender that sold the property in foreclosure is not always so … [Read more...] about What Happens to Your Equity after Foreclosure