Hi:
What happens if the house sells at foreclosure auction for more than what is due the bank?
What happens if the house sells at foreclosure auction for more than what is due the bank?
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It can happen. And if that's the case, the owner of record on the Deed would pocket the profits. Who's ever name is on the Deed on the Date of Sale. That's who get's the money. That's the whole point of Foreclosure. The Lender cannot legally sell a house that does not belong to them.
But you gotta remember that by the time a house gets to Foreclosure, lots of penalties, interest charges, and legal fees have piled on by then. Our Lender is gonna sell our house on Tuesday. According to the Law firm hired to be the Trustee of the Sale, our current balance due is over $10K above what we owe. That's a tad over $6K in late fees, penalties, and interest due to the Lender. And, over $4K in legal fees to the Law Firm the Lender hired as Trustee for the Foreclosure Sale.
Every day you sit, waiting for Foreclosure costs money.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...
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