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My home was foreclosed in 2008. I owed approximately 96K, including court and attorney fees. The home recently sold for 119K. My redemption period was over, so the lending bank sold the home through a realtor. Am I entitled to any of the excess monies?

2 Thoughts on If a foreclosed home sells for more than what’s owed what happens to the profit?
  1. Reply
    Joann 50 St loan officer
    March 9, 2013 at 1:04 am

    The bank makes a profit.

  2. Reply
    Jennifer K
    March 9, 2013 at 1:37 am

    Legally the bank is not entitled to keep any profit, it must go to the owner who was foreclosed on. Otherwise banks could just foreclose on people and make huge amounts of money, where’s the incentive to keep people in their homes? Some things to take into account:
    – the realtor fees
    – any past due HOA fees
    – any past due back taxes
    – excise tax

    In WA state 8% of that sales price would have been taken up by realtor fees and the excise tax = $ 9520, which means that profit on the house was only $ 13480. The bank may have used much of this portion to pay off back taxes or HOA fees. It’s worth a shot to call them and ask but there may not have been a profit depending on what needed to be paid.

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