Thursday
July 24, 2014

Payday for Borrowers After Foreclosure?

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Payday for Borrowers After Foreclosure?

More than 1,000 home owners who lost their homes to foreclosure in the Phoenix metro area may be eligible to recoup thousands of dollars in cash due to rising home prices. Many foreclosures are selling for more because of the general uptick in home prices, and some are even fetching more than what the original borrowers owed on their mortgages.  

Typically in a foreclosure sale, the amount owed to the lender gets paid from the proceeds first. Then the remaining money goes to the county’s treasury office, where it remains for three years. During that time, second-mortgage lenders, homeowners associations, and others with a stake in the property have a chance to file a claim to the money. If the money never gets claimed, it rolls to the state. 

In Phoenix’s Maricopa County Treasurer’s Office there is $24 million in unclaimed funds to date. 

Some home owners who had been foreclosed on may be able to file a claim to the outstanding funds. AZCentral.com describes one couple, for example, who underwent a foreclosure on their rental home and now may be eligible to receive more than $86,000 under the “excess-proceeds” statute because the property was sold for more than what they owed on the home.  

Source: “Phoenix-area foreclosed owners could get thousands,” AZCentral.com (Nov. 13, 2013)

Read more:

5 Foreclosure Laws You Need to Know
Getting Foreclosures Back on the Market
Selling a Foreclosure? Don't Ignore the Tenant