How much foreclosure money am I entitled to? And other FAQs
Foreclosing on your home can be a challenging and scary experience. Your credit’s going to take a significant hit, so you might be worried that you’re going to have a hard time finding a new place to land. Moreover, foreclosing on a house can feel like you’re losing everything about a place you’ve lived for years, including the equity you built. With help from our team at Claim Surplus, we can help you get the foreclosure money you’re entitled to.
We understand that there’s a lot that goes into understanding foreclosure money, like what it is, where it comes from, and how much you can get. To help you get started, we have some answers to a few frequently asked questions.
What is foreclosure money?
If you’ve been making your mortgage for several years, there’s a chance that you’ve built up some amount of equity. Your equity all depends on the home’s market value and what it will sell for. When you foreclosure on your house, rather than getting sold for market value, it’s going to get sold at an auction. The bidding for your house will start at its appraised market value, then go up based on those looking to buy and are willing to pay. If your house sells for a value above the remaining balance of your mortgage, there is foreclosure money available.
Where does foreclosure money come from?
Foreclosure money comes from the money used to buy your house at auction. The purchaser will pay the amount of their bid, and any of that amount that’s left over after paying off the remainder of your mortgage is foreclosure money.
Figuring out how much foreclosure money there will be involves some simple math. For instance, let’s say that you found a house for sale for $350,000. You make a traditional 20% down payment of $70,000 toward the home, which means that you got a mortgage loan for $280,000. After making your mortgage payment for a decade or so, you pay your loan down to $150,000. Then your financial situation changes, and you’re no longer able to pay. Before you can sell, you go into foreclosure. Fortunately, the value of your home has appreciated to $400,000. If your home sells at auction for $400,000, you then have $250,000 in foreclosure money.
How much foreclosure money am I entitled to?
In short, you’re entitled to all foreclosure money from your house. As the owner of the house, you were responsible for making mortgage payments and building the equity in the loan. You’ve made money on the house, so any money that comes back after the sale belongs to you.
After you’ve foreclosed on your house, keep in mind that there are other parties that will be trying to claim surplus foreclosure money as well. The bank from which you originally procured your mortgage loan will often try to claim surplus funds because it’s understood that the house and any financial attachments belong to the bank after foreclosure.
Contact us to learn more
You shouldn’t have to fight for your foreclosure money alone. Reach out to our team at Claim Surplus to find out how we can help. We can help you get in touch with a foreclosure attorney to claim your surplus, so it doesn’t go to someone else. Our team of foreclosure experts will help to put together your claim so our attorney can fight for your rights. Give us a call at 407-759-6226 or send a message using our contact form to schedule a meeting.
