Mortgage Foreclosure Surplus Funds

Mortgage foreclosure surplus funds, also known as excess proceeds or overbids, are a crucial aspect of the foreclosure process that often goes unnoticed by homeowners facing the distressing experience of losing their property. Our Surplus Funds Attorney Network is a network of seasoned attorneys who can help the property owner, creditors and recovery specialists with claiming the surplus funds.

When a homeowner fails to make mortgage payments, the lender has the right to initiate foreclosure proceedings. The property is then auctioned off, typically at a public sale, to recover the outstanding debt. The auction involves potential buyers placing bids on the foreclosed property. If the winning bid amount exceeds the outstanding mortgage amount, this results in a surplus of funds. So, it is the excess money generated from the foreclosure sale that surpasses the amount needed to satisfy the outstanding mortgage, including associated fees and costs.

Surplus funds are calculated by subtracting the total debt, including the outstanding mortgage balance, accrued interest, legal fees, and other associated costs, from the winning bid amount. The resulting surplus is then held by the court or a designated entity. Homeowners facing foreclosure often wonder whether they have any rights to these surplus funds. In many jurisdictions, after the sale, the homeowner has a legal right to claim the surplus. However, it is crucial to act swiftly and adhere to specific procedures to secure these funds.

To claim surplus funds, homeowners typically need to file a claim with the court or the entity holding the funds. The process may involve providing documentation proving ownership, addressing any outstanding debts, and adhering to specific deadlines. Legal assistance is often recommended to navigate this complex procedure. This is why at Berkshire Law we created the Surplus Funds Attorney Network to help parties navigate through this complex procedure.

Mortgage foreclosure surplus funds can be a lifeline for homeowners facing the distressing experience of losing their property. Understanding the intricacies of the foreclosure process, the calculation of surplus funds, and the rights of the homeowner is crucial for those seeking to navigate this challenging situation successfully. Seeking professional advice and acting promptly are essential steps toward maximizing the potential benefits of mortgage foreclosure surplus funds. Call us now at (317) 434-3000 for help!