Finalizing Foreclosure process?
If the default is not resolved during the pre-foreclosure period, the property may be scheduled for a foreclosure auction or sale. This is a public sale where the property is sold to the highest bidder, typically conducted at the county courthouse or another designated location.
Property was Sold at Auction
If the property is sold at auction, ownership transfers to the highest bidder, which can be a third-party buyer or the lender if no bids meet the minimum requirements. In some cases, the property may revert to the lender as Real Estate Owned (REO) or Bank Owned Property. Once sold, it can result in two different kinds of funds that are owed to you.
Surplus Funds
Surplus funds refer to any money left over after a foreclosed property is sold at auction and the outstanding mortgage, fees, and costs associated with the foreclosure process are paid off. These funds can arise if the winning bid at the auction exceeds the total amount owed to the lender and other parties involved in the foreclosure.
Unclaimed Funds
Unclaimed funds generally refer to money or financial assets that have been turned over to the government or another custodian because the rightful owner has not come forward to claim them.