When you fall behind on your mortgage, your house goes into foreclosure. The foreclosure process is the legal proceedings that take place when a lender attempts to recover the balance owed to it by the borrower.
If you are in foreclosure, there are many ways the process can end: you can catch up on the balance of your mortgage; your house can get auctioned off; you can get a loan modification with your bank to help you setup a more affordable payment, etc.
What many people don’t realize is that if you are in foreclosure and you can’t stop your house from selling at public auction, you may be entitled to money. Suppose your house goes into foreclosure, and you can’t pay. For the purpose of this example, let’s say your house has a final judgment of $400k. What will happen is that your house will go up for sale at public auction. If, at auction, your house sells for more than the judgment, you are entitled to a surplus. So, if the house gets auctioned, and it sells for $575k, $400k will go to the bank and their attorneys, but that extra $175k (575 – 400) is a surplus that you are entitled to.
I specialize in real estate law in Miami. I have been handling foreclosures and loan modifications for over 20 years and have collected millions of dollars in surplus money for my clients. It’s not common knowledge to know that you may be entitled to a surplus. And, regardless of whether or not you’re aware of how a surplus works, it can be a difficult process going thru the steps to collect one.
If you are in foreclosure and need help with stopping a sale, getting a loan modification, or think you may be entitled to a surplus, contact me today for a free consultation.