Legal Question in Real Estate Law in California

Re: Do I get the extra cheese

No. You made the bank a gift of your $371,000 in equity by not hiring an attorney beforehand. No one other than the bank bid on your former property at the trustees sale (I presume), so the bank was, in effect, able to purchase the property for the amount you owed them. The bank's shareholders are grateful, and if you live there you will soon receive an eviction notice.

Re: Do I get the extra cheese

Whether Mr. Stone is right or not depends upon what the house really sold for; if it sold for more than the liens and expenses, you should be entitled to the excess. If indeed the bank bid "full credit" ($371,000) and there were no other bids, there is nothing to distribute and the bank is not obligated to pay you the difference between their winning bid and the appraised value.

If the sale were after a judicial foreclosure rather than a trustee sale, as your question suggests, the higher appraisal does have the mild positive effect of insulating you from a deficiency judgment, as I understand the law. (If it were a trustee sale, there couldn't be a deficiency judgment anyway).

Re: Do I get the extra cheese

we need more facts about your ordeal. If there is excess lenders are obligated to put the excess in the interpleader and allow you and all the other creditors who may have any interest to fight it out. Contact us at 213.388.7070 to discuss your case.