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Excess proceeds after foreclosure with a twist?

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    Excess proceeds after foreclosure with a twist?

    I wasn't sure which subforum to post this in, so if I need to move it just let me know.

    I got a letter from an attorney today (not a well respected law firm since they handle primarily debt collections and foreclosures, but a legitimate one according to google) stating that my old house sold via foreclosure in November of last year and this firm is holding excess proceeds from that sale to which I may be entitled. All fine and good except I surrendered the house in a Ch 7 bankruptcy that discharged in August of last year (so a couple of months before the foreclosure sale). I've contacted the attorney who handled my bankruptcy who said he'll look at the letter and get back to me, but since it's Friday I don't expect to hear back until next week some time. so I figured I'd post here and see if anyone has dealt with anything similar who can give me an idea of what to expect? I just assumed that, when we surrendered the house, we also surrendered the rights to any proceeds from its sale, so this kind of came out of nowhere.

    TIA

    #2
    If the excess proceeds are within your allowed homestead exemption you are probably entitled to them. If not, they may belong to the Trustee depending upon the abandonment issue.

    My argument is that once the home was abandoned so was anything relating to the home, including excess proceeds. I believe there is case law to support my contention.

    However, if there were any junior liens against the property those funds should go to the junior lienholder(s) before they would go to you or the Trustee.

    Wait for your attny to respond to see what should or should not happen.

    Des.

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      #3
      Thanks! I'm definitely not acting on any of this without my attorney's input - that house was nothing but problems, so I don't expect anything "good" to come out of it now lol.

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