Lost Your Home to Foreclosure?

You May Have Money Coming to You.

If you have lost, or are losing your home in a foreclosure case, you need to know the rules in your area.  In Franklin County Ohio, almost 3,000 homeowners have money left over from a sheriff’s sale waiting to be claimed at the Common Pleas clerk’s office.  Under Ohio state law, the clerk is required to notify the foreclosed homeowner, but Franklin County does not do that yet. The good news is that most counties do notify the homeowner within 90 days of money left after a sheriff or trustee sale. 

If you lose your home to a foreclosure sale you can help yourself access any foreclosure sale surplus by following these steps.

  1. Make sure you have filed a forwarding address.  Losing your home can be traumatic and you may want to leave the past behind you, but if you have money coming, you could use it in your fresh start.  File a forwarding address with the post office, so you receive any notice of surplus funds due you after a sheriff’s sale of your property.
  • Know who else is in line before you.  In a foreclosure sale the home is sold to the highest bidder and distributed this way:
    • The costs of the sale and the debt owed to the foreclosing mortgagee, usually in first lien position, is paid first.  This includes the unpaid principal balance of the mortgage plus any escrows of taxes and/or insurance that were paid on your behalf, plus unpaid interest due.  The longer the case drags out, the higher the balance is due to the Mortgage Company.
    • Any surplus from the sale is distributed to junior interest or liens in order of priority
    • The borrower or mortgagor receives what is left.  If you had equity in your property, you may have thousands of dollars due to you after the home is sold.
  • Know when the foreclosure sale should be challenged.  A foreclosure sale may be invalidated in rare circumstances for reasons including but not limited to:
  • The foreclosing mortgagee didn’t provide correct notices as required in the home’s jurisdiction.
  • If collusion can be proven between the high bidder and other prospective bidders to reduce the amount bid.
  • The foreclosing mortgagee misrepresented the property’s condition or title or otherwise suppressed bidding by others
  • The foreclosing mortgagee sold multiple mortgaged parcels in combinations or in a way that wasn’t the most beneficial to the mortgagor. 
  • The party conducting the sale was the high bidder.

Even if you have decided to let your home go to foreclosure, it’s a good idea to talk to an attorney experienced in foreclosure defense practice in your jurisdiction.  Find out your responsibilities and possible compensation due. Contact us at MortgageAssistNow.com for an attorney near you who has the foreclosure practice experience you deserve.

Please note this article is meant for informational purposes only and is not meant to be construed as legal advice.  For legal advice on your unique situation, you can speak to an attorney licensed in your jurisdiction.  Contact us at MortgageAssistNow.com; we love to help people find a lawyer who can help.