Can a lender claim excess from a foreclosure?

The lender has no claim to excess proceeds if a foreclosure sale ends in an overage. They can only recoup the amount of their losses—loan balance and associated costs. If their aren’t any pending liens or judgments on the home, the borrower gets the overage. You have a right to claim the money.

What are finder’s fees in the state of Texas?

The finder’s fee is the payment for such a service. In the state of Texas, there is a limit to the types of activities that can be considered eligible for a finder’s fee. The state also incorporates limits on the fees. Finder’s fees are paid for bringing investors together with the company issuing securities, or finding the heirs to an estate.

How are funds distributed after a foreclosure in Texas?

The primary document which by Texas law governs foreclosures and the distribution of funds by a trustee or substitute trustee is the deed of trust. In the standard deed of trust the funds obtained from a foreclosure sale are to be distributed first to cover the costs of foreclosure and the trustee’s fees.

Who is entitled to extra money from a foreclosure sale?

Generally, the foreclosed borrower is entitled to the extra money; but, if there were any junior liens on the home, like a second mortgage or HELOC, or if a creditor recorded a judgment lien against the property, those parties get the first crack at the funds.

Do you have to pay finder fee for tax sale overage?

They do NOT tell the former owner this equity is due to them because if it’s not collected, the government gets to keep that money after a fixed amount of time. The reason why you should care is because you can get paid a finder’s fee of 30-40% of whatever the overage is for connecting people to their unclaimed money.

Who is entitled to excess funds from a tax sale?

Per O.C.G.A. § 48-4-5, excess funds may be claimed by the record owner of the property at the time of the tax sale, by the record owner of each security deed affecting the property, and by any other party having any recorded equity interest or claim in such property at the time of the tax sale.

How to claim foreclosure overage and excess proceeds?

If a borrower resides in the state of Texas, the law requires they file a petition for excess proceeds. They have a two-year window from the sale of the foreclosure to file and state a claim. If the court doesn’t receive the petition within two years of the sale, the taxing entities keep the proceeds by default.

What happens to the overage of a foreclosure?

In the majority of most foreclosure sales, the proceeds go unclaimed because the trustee can’t locate the borrower. If your home goes through a foreclosure, leave a forwarding address and track the process. The lender has no claim to excess proceeds if a foreclosure sale ends in an overage.

Can a county claim surplus funds in a foreclosure?

The answer is, absolutely yes! For example, the counties within the second court of appeals and the counties within the fourth court of appeals have different time frames to claim surplus funds, per two recent cases.

How to claim foreclosure overage surplus funds from?

The best way to be sure that there are excess proceeds from a foreclosure sale is to consult with our attorney and confirm the amount of foreclosure proceeds that can be claimed. Our team has the experience to make successful claims and recovery funds on behalf of homeowners who have lost their homes in foreclosure.

Why are there excess sales proceeds after a foreclosure?

EXCESS SALES PROCEEDS ARE MONIES LEFT OVER AFTER A TRUSTEE’S SALE Once the trustee’s sale has been completed there may be monies left over because the lender who foreclosed has been paid in full. These extra monies are called “excess sales proceeds”.