Do You Still Owe Money After A Foreclosure?

Possibly so, but, it could be that you are the one that is owed US Treasury unclaimed money. It is difficult to go through a mortgage foreclosure. Not only do you lose your home Lenders can also pursue homeowners for any deficient amount in some scenarios. The difference between the amount owed on the foreclosed home and its fair market value on the day of the foreclosure sale is known as a foreclosure deficiency. In some cases, you may still owe money after a foreclosure.

Mortgage Foreclosure

When a home is foreclosed, the lender will take legal possession of the property. They can then try to sell the home for the full amount that is owed on the load. If the home sells for more than the amount owed, the previous homeowner is entitled to the excess funds, less the lender expenses. During a foreclosure auction, however, foreclosing mortgage lenders frequently fail to collect the full amount owing.

Deficiency Judgments

Mortgage lenders may pursue foreclosed homeowners for the difference between the sale price of a foreclosed home and any outstanding mortgage obligations. When using judicial foreclosures, lenders are frequently able to obtain shortfall judgments against homeowners. A deficiency judgment means you are legally accountable for the difference between the foreclosure sale price and the amount you owe. Furthermore, lenders may have to wait years before filing for and enforcing mortgage deficiency judgments.

Exceptions

Mortgage lenders can\’t pursue foreclosed homeowners for deficiencies in trust deed jurisdictions like California since they foreclosed non-judicially, or without going through the courts. However, certain states, like California, consider any forgiven or inadequate mortgage debt to be taxable. In trust deed states, the drawback for a homeowner is that foreclosure can happen fast. In addition, states that use trust deeds, such as California, have limited periods in which you can reclaim your house after it has been foreclosed.

Right now, there are billions of dollars in unclaimed funds owed to the American people. Our team of experts will help you claim the funds that are rightfully yours with no upfront fees.  Contact us today and let us help you find if you have unclaimed money.