Updated about 13 years ago on .
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Rehab escrow account after trustees sale
I lost a property to trustee sale a couple of years ago. I had a bridge/rehab loan with a private lender. By chance this lender was put into receivership for a number of illegal activities not long before the sale of my property. The receivership did put in a full credit bid on the property, so my debt is presumably settled.
Because I had hope of renegotiating the loan up until just before the trustees sale, I continued to put money into the property. The last $30K or so that I spent was, of course, not reimbursed from the construction escrow account.
There is a small amount (approx $9000) remaining the construction account, and it's with a reputable escrow company. Does anyone have experience or thoughts regarding the likely outcome when I put in a claim for the balance? My contact at the escrow company says to make my case as strongly as possible in the first communication I send to him. Sounds like when I put in my claim, he'll notify the receivership of it, which means they'll become aware that the money is there and perhaps put in a claim of their own.