Where does the excess money go after an auction?

Question

Hello, I am a starting my journey in real estate and learning whatever I can about the business.

I went to a couple of auctions around my neighborhood and was curious about one thing.

Where does the excess money go after an auction? I asked the people working at the auction site and they said it goes to the family that previously lived in the home. I asked a couple of investors as to how does the money get delivered to the family or previous owner(s), they said a lawyer tries to call them.

So my real question is how to find this lawyer or the person responsible to give the money to the previous owner.

Any answers to the topic is greatly appreciated, thank you.

Ron S. · Answer

...someone needs to quit posting while taking Ambien.

Jay Hinrichs · Answer

on the west coast in trustee sale states it very straight forward.. the winning bid amount goes to the trustee company.

they then pay the bank their credit bid.

if there is junior liens those funds are sent to those lenders or judgement creditors.. if they cant be found many times they are held for an amount of time then interpleaded.. just like a title company does with EM thats never collected or fought over.

In Washington State you do need to make a claim with the court.. Oregon the trustee will simply mail the next in line checks.

if no junior leins it goes to who ever owned the house..  If they cant be found then it goes to the state surplus fund.. which you can check on line if you have anything due there.. its amazing whats due there.. I have found monies owed me that i did not realize .... mainly excess excrow funds that for some reason never made it to my mail box and were sent to the state surplus fund.

each state is unique..

Tom Gimer · Answer

You are going to need to research the handling of a surplus in a foreclosure proceeding. Different rules apply from state to state. Generally speaking, since the prior owner is a party to the foreclosure action, they will be receiving notices... including the results of the auction sale and an accounting. If there is a surplus they may need to make a claim for those funds in the suit.

The lawyer to contact would be the one representing the foreclosing lienholder.

Eian Siddiqui · Answer

I was just curious of the process.

Thank you all for posting and helping me better understand the post auction process.

Michael Plante · Answer

The  OP is talking about the excess funds  from the auction after Attys taxes and mortgage company are all paid

The remains simply go to the mortgagor

As to scraps it depends how far behind the mortgagor got, if the property appreciated or not, how much of a down payment the mortgagor put down etc

Having foreclosed on a buyer in FL myself this is not what I know to be true

Michael Plante · Answer

I’m curious why you want to find this out?

To answer your question in the counties I have looked at it shows the procedure of each forclosure and when of the defendent answers the complaint it some times shows the Atty   Some times it does not

Where does the excess money go after an auction?

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