California Foreclosure?

Question

If my house has been foreclosed and the bank sells it for more than what is owed, who gets the money?

Answer 1

In CA (each state will have different laws) you will receive any excess funds. However, all expenses are added in, not just the loan. There is the commission to the agents involved in the sale, any maintenance they paid for (they do not tend to do this though) as well as the legal expenses of foreclosing on the property.

Answer 2

With all the costs associated with foreclosure, if there is any money left over then you would get it, but that is highlly unlikely. It would also be highly unfortunate and financially idiotic. If you had enough equity in your home that they could foreclose, sell it, and still make a profit you seriously dropped the ball in trying to either refi or sell it yourself and avoiding the foreclosure to begin with.

Answer 3

If there is any money left over, the owner of the home would get it. However, it's almost unheard of, since the bank (correctly) will also charge the owner for the costs of foreclosure. That can run into the tens of thousands of dollars, since there are numerous attorneys involved, along with assorted fees required to complete the foreclosure process.

Answer 4

by the time the house goes into foreclosure, the bank legally owns it. you'd get nothing. if you have some equity and can sell it in a reasonable timeframe, consider selling the house yourself so.

don't forget the bank will tack on interest at the default rate, late fees, legal fees, etc.

Answer 5

If it has already been forclosed. The bank owns the property, if the property is sold for more than what you owe, the bank (present owner) makes that money.

This is why it is very important to act (or to sell your home) if you think you cannot make the payment. Forclosure will put a big ding on your credit report that will limit your buying poer in the future.

Answer 6

That would be a rare occasion indeed! :)