Forclosure Question

[ChuckB]

Maryland. About a year ago my wife missed a few mortgage problems in a severe state of depression and managed to hide the issue from me for a year. Needless to say the bank took my house.
At the forclosure the house sold for 109k which was what was owed on it. Shortly after the forclosure I moved out then filed a chapter 7. For some reason the bank cant do anything with the property until I get finished with the chapter 7. But eventually they will be able to sell the property. I have had several mixed answers on this issue. If it sells for more then the 108k am I entitled to it?
My real motivation would be to buy it back a few months after the chapter 7 as it is worth a lot more then the 109.

 

[HomeGuru]

Maryland. About a year ago my wife missed a few mortgage problems in a severe state of depression and managed to hide the issue from me for a year. Needless to say the bank took my house.
At the forclosure the house sold for 109k which was what was owed on it. Shortly after the forclosure I moved out then filed a chapter 7. For some reason the bank cant do anything with the property until I get finished with the chapter 7. But eventually they will be able to sell the property. I have had several mixed answers on this issue. If it sells for more then the 108k am I entitled to it?
My real motivation would be to buy it back a few months after the chapter 7 as it is worth a lot more then the 109.

**A: all expenses in connection with the property must be paid first such as interest, late fees, foreclosure fees, legal fees court costs etc., then if there is any money left over it goes to the BK Trustee.

 

[ChuckB]

**A: all expenses in connection with the property must be paid first such as interest, late fees, foreclosure fees, legal fees court costs etc., then if there is any money left over it goes to the BK Trustee.

Thanks for the reply. I want to clarify that the forclosure and auction were done before the Chapter 7 was filed. I just know the mortgage company had started evictions etc (Even though I had already left) But had to stop after I filed. So I guess the bank is not allowed to profit from the forclosure?
In that case I suppose they would be inclined to want to sell the house at or just above the mortgage amount?

 

[HomeGuru]

Thanks for the reply. I want to clarify that the forclosure and auction were done before the Chapter 7 was filed. I just know the mortgage company had started evictions etc (Even though I had already left) But had to stop after I filed. So I guess the bank is not allowed to profit from the forclosure?
In that case I suppose they would be inclined to want to sell the house at or just above the mortgage amount?

**A: my response remains the same.

 

[SysAdm]

cont...

*Florida

I noticed you mentioned you filed for bankruptcy after the foreclosure? You should have filed before the foreclosure went to auction. A Bankruptcy is one of the few things that can stop a foreclosure process. (again... here in FL)

Say you owe the bank $109k. The Bank can freely bid up to that amount at the foreclosure auction without having to spend a dime (court fee is $41.00 in my county paid by the Bank for each foreclosure). Any amount of money that goes over the Judgment amount (the amount you owe the Bank) goes back to YOU.

Example:

Day of Foreclosure auction...
Judgment is for $109k
Bank quits bidding at $109k.
3rd party buys house for $129k
Bank (person with the lien) gets their $109k, you (the person with the deed) gets the difference. In this case $20,000.

Also... once a foreclosure is done, and Bank bought back your house at the Judgment price, you get nothing. Even if the Bank turns around 2 months later and sells it for $260k!

Side note... you also have up to 10 days to leave the house after the sale at the foreclosure. (in which time most people completely trash the property)

Another side note... If you owe the IRS any money, the IRS has up to 120 days to buy your property from the person who bought it at the foreclosure sale. Or the new owner can try and work something out with the IRS.

_____SysAdm