Mortgage Foreclosure Example:
You're behind on your mortgage and the lender forecloses on your property. The property is sold at public auction for $210,000. The balance of the mortgage was $140,000 at the time of sale. The difference of $70,000 dollars is your money! (Note: there may be other items such as legal fees, auction costs, liens, etc. that may reduce the final balance to which you are entitled).
$210,000 Sold - $140,000 mortgage = $70,000 Owed to You!
$210,000 Sold - $140,000 mortgage = $70,000 Owed to You!
Tax Foreclosure example:
Let’s say you owe $12,000 in property taxes (on your house) and your property sold at a Tax Deed sale for $140,000. The Government will take $12,000 for the taxes owed. So what happens to the remaining $128,000? It should go to you, but will end up with the Government if you don't collect it in a timely manner.
$140,000 sale price - $12,000 property taxes owed = $128,000 Your Money!
$140,000 sale price - $12,000 property taxes owed = $128,000 Your Money!
WHERE DOES THE $128,000 OVERAGE GO?
It Should Go To YOU! Here's Why...
By the time the auction has taken place, you have moved onto another residence. The Government is required to notify you that you are owed this money. So, they mail a certified letter to your last known address. Guess where that is? Yep, it’s the home you moved out of many months ago or even a year ago. So the letter is returned back to them as undeliverable and the deadline for you to file your claim is looming ahead. They have fulfilled their legal requirements and you have no idea that this hard-earned equity is yours! -And if you don't know about your equity or can't get to it; the Government will retain those funds forever. If you were them, how hard would you look?
