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Old 07-20-2005, 08:25 PM   #1 (permalink)
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Question Question regarding sherrifs sale

Upon foreclosure, a property is sold at sherrifs sale. At sherrifs sale the bank will place their opening bid for the amount owed them plus fees. I understand that they can continue to bid higher. Hypothetical situation:

Bank foreclosure amount = $50,000. Property valued at $150,000. If an indiviual investor bids and receives the winning bid at $100,000; how are funds dispursed? Does the foreclosing bank receive $50,000 and if so, what happens to the remaining $50,000.
Or is the bank forced to continue bidding against other investors until they believe their bid is above the properties value at which time they would stop? If so, do they still get the amount of the foreclosure judgment?
Confusing to me. Please help me understand the situation.
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Old 07-21-2005, 10:22 AM   #2 (permalink)
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Lightbulb Proceeds After Foreclosure

Property in a Foreclosure auction goes to the highest bidder. And typically foreclosure bids are only a fraction of the market value of the property so there are not a lot of proceeds to disperse.

Several states have adopted sale price limitations to ensure that fair and equitable prices are paid at the foreclosure sale. Generally, the price limitation protects the borrower's equity or protects the borrower from deficiency judgments. Laws on deficiency judgments differ from state to state.

In many foreclosures the lender (bank etc.) is the only bidder. In this case the courts will examine closely how much they purchased the property for to determine if it was a fair amount. This is especially true in states that allow deficiency judgments.

As for the disbursement of money, they must be in the order and in accordance with the judgment or decree. If there are surplus proceeds after costs of foreclosure have been paid to the lender, the junior lenders, creditors and lien holders whose liens are being extinguished by the foreclosure are next to receive money. Assuming all outstanding debt is paid then surplus will most likely go to the borrower. For a more specific answer consult an attorney.
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Old 09-07-2008, 09:32 AM   #3 (permalink)
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MOST LIKELY?

The person bringing the suit is paid after any outstanding taxes... then come creditors with liens noted against the deed at the courthouse... then the owner gets the rest. For it to potentially go elsewhere there has to be a lien. That might show up because this kind of sale is posted in the paper. An emergency court order to stop payout to the owner could happen if there is any other debt based on the newspaper posting.
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Old 09-07-2008, 05:55 PM   #4 (permalink)
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A homeowner that is foreclosed on NEVER gets a dime.

PERIOD.
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Old 09-07-2008, 06:52 PM   #5 (permalink)
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Well, Grace, I'm also a Real Estate Broker and I know that very often the investment is lost if there ever was one... but there are situations where the market is down, the product doesn't sell, and the owner can't meet the mortgage but had a serious downpayment. The fact that it is owned is not negated by the foreclosure. The order of payment is as we have outlined.... but the owner is the ONLY one who can collect anything paid for the property above the value mortgaged and owed in taxes. Certainly there is no case for the bank or the state to get it (except if they died without heirs). And while it is indeed abnormal with today's poorly appraised single family properties for there to be enough investment and to belatedly have a strong enough market allowing what has NOT previously sold to be purchased for more than the combined encumbered amount, IT CAN HAPPEN, because that is the ownership factor. I could actually see it happening most often after the death of parents whose children might not be aware enough or able to take over the mortgage... but they would get the residual amount.

So where did you say you got your law degree?

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Old 09-07-2008, 07:43 PM   #6 (permalink)
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Quote:
Originally Posted by boykinmama View Post
Well, Grace, I'm also a Real Estate Broker and I know that very often the investment is lost if there ever was one... but there are situations where the market is down, the product doesn't sell, and the owner can't meet the mortgage but had a serious downpayment. The fact that it is owned is not negated by the foreclosure. The order of payment is as we have outlined.... but the owner is the ONLY one who can collect anything paid for the property above the value mortgaged and owed in taxes. Certainly there is no case for the bank or the state to get it (except if they died without heirs). And while it is indeed abnormal with today's poorly appraised single family properties for there to be enough investment and to belatedly have a strong enough market allowing what has NOT previously sold to be purchased for more than the combined encumbered amount, IT CAN HAPPEN, because that is the ownership factor. I could actually see it happening most often after the death of parents whose children might not be aware enough or able to take over the mortgage... but they would get the residual amount.

So where did you say you got your law degree?
Always a leap RIGHT to the PERSONAL attacks when someone disagrees with you. I haven't referenced your profession or your qualifications a single time---yet your rapt jealousy motivates you to do so nearly every posting.

IF my house is FORECLOSED ON for NON PAYMENT, I LOSE my equity and I am not entitled to MONEY from the sale at the courthouse steps. Consider this---WHY does the mortgage company make you pay MIP until the debt to value ratio is at least 80/20? BECAUSE THEY glean the equity from the home if it is foreclosed upon and SOLD. Now, according to you, they GIVE the money back to the homeowner---then EVERY homeowner who has equity but doesn't want to fool with selling their house could just allow it to slip into foreclosure and wait for the big EQUITY check to come in the mail. How foolish.

IF THE BANK IS FORECLOSING THERE IS NO "OWNERSHIP FACTOR" ( whatever the dickens THAT means). ANY ownership "factor" is the BANK. A persons OWNERSHIP of the property is contingent upon his PAYMENT of the same. NON PAYMENT does not retain any ownership right to any money from the foreclosure of the house ( downpayment OR equity). I dare you to cite a single source that proves otherwise--besides merely saying "I'm right , cuz now Im a real estate broker".

Show me a single instance where the bank repossessed a house and GAVE the home owner BACK the money that the house may have garnered at a sale OVER and above the NOTE amount. Example: Lets say I have a mortgage for 200K, but the house is WORTH 300K. I stop making payments, and am foreclosed upon. At action, the house sells for 250K with no liens or back taxes owed. You REALLY think I am going to get a check in the mail for the AMOUNT the house garnered above the loan amount?

Again, agree to disagree. Virtually everyone that comes here without any legal experience bolsters their opinions with "degrees" , "specialities", or "licenses". Suddenly, you are now a real estate broker, along with the other things you listed. Sure. Whatever. And I'm a ballerina. How would I know? Unlike you, I don't make suggestions you are lying or misrepresenting your position. I simply DISAGREE and explain why.

It would be gratifying if you could learn to do the same.

How about supporting your point with LEGAL sources of documentation instead?

For your many postings complaining about information about my personal life---you now ask for more? YOU innitiated comments about my appearance, my children, my hair color, my profession, my degrees, my husband, my childhood, etc. ALL NEVER mentioned by me before YOU attacked all of the above. Yet, when I RESPOND, you complain I "provide too much personal information"----yet YOU innitiated a consideration of the same. NOW you want to know MORE personal information?

EVER single comment I have made about my personal life in response to your queries has done nothing but offered you MORE to mock, attack, and ridicule. And you want to know more?

Sure.

And support your point with documentation--instead of casting aspersions on my personal and professional life. I haven't the LEAST bit of interest in nor have I made reference TO your PERSONAL life , MENTAL ability, or professional qualifications. Yet ALL THREE of those have been your fodder---and that is just in ONE DAY. TODAY.

Stand down.

Bottom line: we are arguing hypotheticals. A house in foreclosure, selling for MORE than the loan amount is virtually unheard of.

As I have stated for the third time today, agree to disagree and move on.
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Last edited by GentleGrace; 09-07-2008 at 07:46 PM.
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Old 09-07-2008, 07:55 PM   #7 (permalink)
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Read it and weep... it is time you took your own advice. Put up or shut up.

Right out of wiki... but also in my licensing material.

Foreclosure by judicial sale, more commonly known as Judicial Foreclosure, is available in every state and required in many, involves the sale of the mortgaged property under the supervision of a court, with the proceeds going first to satisfy the mortgage; then other lien holders; and,

finally, the mortgagor/borrower if any proceeds are left.

As with all other legal actions, all parties must be notified of the foreclosure, but notification requirements vary significantly from state to state. A judicial decision is announced after pleadings at a (usually short) hearing in a state or local court. In some fairly rare instances, foreclosures are filed in Federal courts.

Foreclosure by power of sale, which is also allowed by many states if a power of sale clause is included in the mortgage. This process involves the sale of the property by the mortgage holder without court supervision. It is generally more expedient than foreclosure by judicial sale. As in judicial sale, the mortgage holder and other lien holders are respectively first and second claimants to the proceeds from the sale.

Other types of foreclosure are considered minor because of their limited availability. Under strict foreclosure, which is available in a few states including Connecticut, New Hampshire and Vermont, suit is brought by the mortgagee and if successful, a court orders the defaulted mortgagee to pay the mortgage within a specified period of time. Should the mortgagor fail to do so, the mortgage holder gains the title to the property with no obligation to sell it. This type of foreclosure is

generally available only when the value of the property is less than the debt

("under water"). Historically, strict foreclosure was the original method of foreclosure.

BUT NOW IS ONLY AVAILABLE IN THREE STATES... HINT...ONE MUST KEEP UP ON THESE THINGS... AND BUY UPTODATE LAW BOOKS.

Last edited by boykinmama; 09-07-2008 at 08:00 PM.
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Old 09-07-2008, 08:29 PM   #8 (permalink)
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Grace, stop complaining that I won't let you get away with disputing my answers. You have quoted me saying I was not a lawyer at least three times on this forum in a derogatory fashion. You continually make negative comments about the clarity of my words and continually assail my answers ... even after I have proven yours to be WRONG. You add your own words to mine when you pretend to quote me and then you castigate ME for being rude. Your complaints do not make it so... just like your adamant answers don't make you right. So give it up.

It is 156, not 85. I estimate yours to be 138 to 142. And I really would like to know where you got your degree.

And Grace, I don't even KNOW what color your hair is. YOU are the one who publishes inappropriate personal information and websites about yourself and your children and your dead husband. At least when I tell you I have the credentials to speak, I'm giving you reality. You are passing off information that has been incorrect for over ten years.

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Old 09-07-2008, 09:50 PM   #9 (permalink)
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You cannot STOP me or anyone else from disputing your answers, as you are free to disagree with mine or anyone elses. I don't
'assail' your answers, I DISAGREE with them.

Thankfully, some of us can do so without telling other posters to 'shut up', after specifically ASKING them to answer.

I have no idea what 85, 156, etc means.

Does that come to you while you are 'mentating'?
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Old 09-07-2008, 10:35 PM   #10 (permalink)
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WHAT ARE YOU THINKING?

By Stephen L. Tanner

In reviewing my title after it was announced, I realized that it could mean different things depending on which word is emphasized: What are you thinking? meaning, What exactly is going on in you head? What are you thinking? meaning, If I have misunderstood you, exactly what did you mean? What are you thinking? meaning, I've told you what I think; now give me your ideas. What are you thinking? meaning, You couldn't have been thinking at all. Perhaps what I am going to say touches upon more than one of these meanings.

Have you ever stopped to consider how many synonyms we have for the words think, thinking, and thought? Some are part of our active vocabulary and are familiar friends—words like ponder, muse, reflect, reason, meditate, contemplate. Some are part of our recognition vocabulary and, although we may not be on intimate terms with them, they are not total strangers—words like ruminate, cogitate, and ratiocinate. Others stretch our recognition vocabulary and seem a little exotic—words like ideate,
mentate,
and cerebrate. Still others seem like creatures from another planet and have to be beamed up by means of a dictionary—words like perpend, noesis, and lucubrate. The total of these single-word synonyms makes a hefty list. Then when we add phrases like puzzling over, mulling over, stewing over, soul-searching, putting on one's thinking cap, and using the old gray matter, the list rapidly expands. I gave up my count at around 50.

JUST IN CASE YOU RECOGNIZE ONE OF THESE SYNONYMS, I THOUGHT I'D JUST SEND YOU THE WHOLE LIST TO BE SURE YOU COULD UNDERSTAND WHAT I SAID.

When I say you assail my words, it has to do with the ridiculing tone of YOUR words... and my knowledge of how many other times you have done the same and then claimed that I did it to you by "quoting" what I said but including words that I did NOT say. Most folks would say those tactics were beneath the level of ethics of debate, but my own opinion is that a lawyer would say just about anything in an argument. You alone have proved that. Ever heard the phrase "win at any cost"... "take no prisoners"... People who subvert their own principles to win an argument have no principles. And not all of them are lawyers.

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