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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Excess sale proceeds go where??? Posted by Ward-CA- on August 15, 2001 at 6:25 PM In Reply to: Who gets to keep excess sale proceeds??? posted by Pat on August 15, 2001 at 12:16 AM : Let's say I own a note with a $1,000,000 outstanding balance. If I foreclose on the property and someone bids $1,400,000 for the property, do I, as the note holder, get to keep the excess proceeds or is this amount refunded to the previous owner. The property is in Texas. =•=•=•=•=•=•=•=•=•=•=•=•= Pat, the overbid at a foreclosure auction sale almost always goes down, in a pro tanto distribution, to the next lienor in priority to the full extent of that lender’s indebtedness. If there is still some surplus left after that it will go on down to the next junior lienor and the next junior, ad infinitum. If there was just one lien against the title of the property, and at its foreclosure an overbid above the opening bid was created, the surplus would go down to the owner. So any overbid always go downward to the junior lienors of record, and possibly the defaulting owner—basically to those who are adversely affected by the senior’s foreclosure action. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Let's say I own a note with a $1,000,000 outstanding balance. If I foreclose on the property and someone bids $1,400,000 for the property, do I, as the note holder, get to keep the excess proceeds or is this amount refunded to the previous owner. The property is in Texas. : =•=•=•=•=•=•=•=•=•=•=•=•= : Pat, the overbid at a foreclosure auction sale almost always goes down, in a pro tanto distribution, to the next lienor in priority to the full extent of that lender’s indebtedness. If there is still some surplus left after that it will go on down to the next junior lienor and the next junior, ad infinitum. If there was just one lien against the title of the property, and at its foreclosure an overbid above the opening bid was created, the surplus would go down to the owner. : So any overbid always go downward to the junior lienors of record, and possibly the defaulting owner—basically to those who are adversely affected by the senior’s foreclosure action. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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