Broker / Investor · Tewksbury, MA · Member since 2008 · 1k+ posts · 351 votes
Does anyone know what happens to the money that comes from the difference between the balance on the lien being foreclosed and the highest bid at the auction? Is that money given to the homeowner? If so how do they redeem it? It seems like many cities and banks would have a hard time finding a forwarding address for this money since they just foreclosed on the home of the person entitled to it and that person has likely already abandoned the property.
If the lien holder does not send the owner the money are they allowed to keep it?
Chapel Hill, NC · Member since 2015 · 34 posts · 25 votes
6y
In NC, I believe it goes into unclaimed property with state treasury https://www.nccash.com/
"§ 45-21.31. Disposition of proceeds of sale; payment of surplus to clerk
(b) Any surplus remaining after the application of the proceeds of the sale as set out in subsection (a) shall be paid to the person or persons entitled thereto, if the person who made the sale knows who is entitled thereto. Otherwise, the surplus shall be paid to the clerk of the superior court of the county where the sale was had - (1) In all cases when the owner of the property sold is dead and there is no qualified and acting personal representative of his estate, and (2) In all cases when he is unable to locate the persons entitled thereto, and (3) In all cases when the mortgagee, trustee or vendor is, for any cause, in doubt as to who is entitled to such surplus money, and (4) In all cases when adverse claims thereto are asserted"
Chapel Hill, NC · Member since 2015 · 34 posts · 25 votes
6y
In NC, I believe it goes into unclaimed property with state treasury https://www.nccash.com/
"§ 45-21.31. Disposition of proceeds of sale; payment of surplus to clerk
(b) Any surplus remaining after the application of the proceeds of the sale as set out in subsection (a) shall be paid to the person or persons entitled thereto, if the person who made the sale knows who is entitled thereto. Otherwise, the surplus shall be paid to the clerk of the superior court of the county where the sale was had - (1) In all cases when the owner of the property sold is dead and there is no qualified and acting personal representative of his estate, and (2) In all cases when he is unable to locate the persons entitled thereto, and (3) In all cases when the mortgagee, trustee or vendor is, for any cause, in doubt as to who is entitled to such surplus money, and (4) In all cases when adverse claims thereto are asserted"