In simple terms, “foreclosure is the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property.” – Investopedia
In foreclosure situations, your home gets auctioned off to the highest bidder. Sometimes, the house gets sold for more money than the liens against it. This extra money is called foreclosure surplus funds.
If you haven’t been able to keep up with your mortgage payments or taxes and your house is foreclosed upon and sold at auction for more than the debt amount against it, you are entitled to those surplus funds.
Let’s say, for example, that you own real estate with a mortgage owing of $80,000 that is foreclosed upon. The bank, at auction, gets a purchase price of $95,000. You are entitled to the remaining $15,000.
The main reason homeowners never receive their surplus funds is because they simply are unaware that they exist. You may or may not receive notice that such funds are available. For example, a notice may have been sent to the sold home and never forwarded to you. In some cases, you were not sent a notice. As a result, you may have to do some research to find out if these funds exist. Where do you look? Who do you call? What if you encounter resistance? This is where an aggressive and knowledgeable attorney can be indispensable to you.
There can sometimes be significant money that can inevitably be used by you or your family (or your heirs) as you deal with your changed circumstances. This money sometimes goes unclaimed for years, with those who could benefit from it not even aware of its existence. In some states, like Kansas, these funds will automatically go into the State Treasury Fund after a set period of time.
As there are timelines that must be followed, filing a claim as early as possible will make your request for recovery more successful. A successful claim can take from one month to several months to pay out after it is filed. So, it is important to get the process moving.
During your first consultation at Titus Law, LLC. you and your attorney will discuss your circumstances and you will learn what to expect from the process. You will need to file a petition for the excess proceeds. You have a limited time to do so, or you will lose your funds by default. He will help you fill out and file the proper paperwork and ensure you take action before your claim expires.
Money can be tight after a foreclosure. That’s why Titus Law Firm, LLC pays all expenses to make a claim for the excess funds on your behalf. And you will have no out-of-pocket expenses. We simply split any recovered excess funds with you at an agreed upon percentage. We pay all of our expenses out of our portion of the recovered funds.
We take all of the financial risk to pursue your excess funds. If we aren’t able to recover any money, we don’t make any money. And we will never ask you to reimburse us for our costs.
If you feel that you may be entitled to excess funds from a sale of seized property, please reach out to us. We would be happy to investigate and discuss your situation with you. Please contact the attorneys at Titus Law Firm, LLC at (913) 543-4500.