Posted by Bruce Lawson on September 30, 2003 at 13:50:13:
If a foreclosed home sells for more than what is owed the bank(mortgagee)after everyone who had an interest in the property gets paid then the remaing funds go to the borrower(mortgagor).
I am confused about something, and perhaps you know the answer. A house is foreclosed upon. Entire mortgage balance due at time of foreclosure is $170,000. But surprise surprise, the house sells for $192,000 at the foreclosure auction. Is the foreclosed owner entitled to the excess proceeds (that is minus the sheriff fees, legal fees etc). Is the owner of a foreclosed property entitled to the excess proceeds, where the foreclosed property is sold for much more that the total mortgage due ? I am in NY. Please help.