QUESTION
Does the former homeowner get the excess funds from the foreclosure sale?
Asked on Dec 05th, 2013 on Foreclosures - California
More details to this question:
Non judicial foreclosure in CA 7/11. Filed BK 8/10 which was final 1/11. Foreclosed by 1st TD. The heloc non-purchase money 2nd should have become an unsecured debt after the foreclosure. It was listed in the already finalized BK so therefore cannot collect.
1 ANSWER
The law requires the lender to refund to the trustor the net surplus from the trustee's sale, that is the net difference between the sale price and the loan balance. (Civil Code section 2924k, subdivision (a).) The tricky word, though, is "net." Lenders typically suck up most or all of the remaining equity with a battery of appraisal fees, maintenance fees, escrow fees, transfer fees, trustee's fees. attorney fees, taxes, insurance premiums, and so on. You are entitled to a written accounting showing the sale price, itemized deductions, and the net balance, if any.
Answered on Dec 10th, 2013 at 4:36 AM