3 Signs You Need to Speak to a Lawyer About Excess Proceeds

If you’ve recently lost your home to foreclosure, you may be leaving money on the table depending on your circumstances. Did you know your lender possibly generated excess proceeds from the sale of your home that you could be entitled to? Review your situation, and look for these three signs that you need to speak to a lawyer about excess proceeds.

1. You received the notice of sale in the mail.

The notice of sale contains all the details for the auction at which your home will be sold and is the first sign you should speak to a lawyer. Upon receipt of this notice, you can be certain that the lender is moving forward with foreclosure, and you should prepare for your next steps. The funds from a foreclosure sale are primarily used to pay the lender the remaining balance of the mortgage, as well as taxes and other associated fees. In some cases, the final sale price of the house is greater than what is owed on the mortgage, yet the lender is not entitled to more than is necessary to cover your debt to them. You have the right to claim this leftover money, but trying to file a claim without the legal expertise to navigate the law and tax code could result in you losing the money you deserve.

2. You have, or had, positive equity in your home.

This is the biggest sign that you need to reach out to a surplus funds recovery attorney. As previously mentioned, the excess funds following foreclosure are realized when the home sold is worth more than what is owed. Equity is the difference between the appraised value of a home and the amount owed on the mortgage, so having positive equity would mean that your house is likely to sell for more than what is owed. When this happens, you are supposed to receive a notice of excess funds that provides the amount held, but having just lost your home, this notice can sometimes fail to be delivered. This is important to know because some victims of the foreclosure process may not even know they had positive equity. As such, it is a good idea to speak with a lawyer about excess funds whether you received a notice or not.

3. You have any confusion or questions about the foreclosure process or the possibility of excess proceeds from your old home.

Staying up to date on the tax code, banking laws, and your state’s laws is an overwhelming task for the uninitiated and is wisely left in the hands of professionals. Even just confirming that you are, in fact, owed money can be a painstaking task unless you have years of experience dealing with lenders who likely don’t have your best interest in mind.

Don’t let your lender keep the money you deserve. If you are at any stage in the foreclosure process, talk to an excess proceeds attorney to ensure the banks aren’t keeping your money hidden from you.