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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Help with foreclosure overbid distribution. Posted by Ward-CA- on December 06, 2001 at 10:17 PM In Reply to: help with forclosure posted by mike on December 06, 2001 at 6:45 PM : hello : My mother-in-law lives in a house whose loan is under my wife's name. In other words my wife bought the house in 1994, and after we got married her Mom lived there. Apperantly my mother-in-law has not been able to pay the morgage and the house was forclosed and sold. we just found out about it. the house was sold more than the actual loan (overbid), so I need to know 2 things: : 1) how is this going to affect my wife's credit and is there anyway to protect her? : 2) how does my mother-in-law go about getting the overbid money from the lending compony since there appears to be some money that is hers? : thank you =•=•=•=•=•=•=•=•=•=•=•= Mike, 1). Your wife signed for the loan. The borrower who signs for a mortgage is the party who is going to be listed as responsible for causing the foreclosure of said mortgage. The lender has probably already reported your wife as responsible for causing the foreclosure to their credit agency. 2). The overbid of a foreclosure sales goes downward in priority to any successively junior lienors and interest holders in a protanto distribution pattern. Your mother-in-law doesn’t fit the description of a junior lienor or junior interest holder whereas your wife does since she’s the owner of the property. So the excess funds would rightfully go to your wife, the property owner rather than you mother-in-law, a non-vested occupant. Generally the party entitled to share in a foreclosure overbid has to request the overage via a notarized statement explaining why they feel entitled to same. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : hello : : My mother-in-law lives in a house whose loan is under my wife's name. In other words my wife bought the house in 1994, and after we got married her Mom lived there. Apperantly my mother-in-law has not been able to pay the morgage and the house was forclosed and sold. we just found out about it. the house was sold more than the actual loan (overbid), so I need to know 2 things: : : 1) how is this going to affect my wife's credit and is there anyway to protect her? : : 2) how does my mother-in-law go about getting the overbid money from the lending compony since there appears to be some money that is hers? : : thank you : =•=•=•=•=•=•=•=•=•=•=•= : Mike, : 1). Your wife signed for the loan. The borrower who signs for a mortgage is the party who is going to be listed as responsible for causing the foreclosure of said mortgage. The lender has probably already reported your wife as responsible for causing the foreclosure to their credit agency. : 2). The overbid of a foreclosure sales goes downward in priority to any successively junior lienors and interest holders in a protanto distribution pattern. Your mother-in-law doesn’t fit the description of a junior lienor or junior interest holder whereas your wife does since she’s the owner of the property. So the excess funds would rightfully go to your wife, the property owner rather than you mother-in-law, a non-vested occupant. : Generally the party entitled to share in a foreclosure overbid has to request the overage via a notarized statement explaining why they feel entitled to same. : : Hope this helps. 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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