Legal Question in Real Estate Law in California

Re: foreclosure excess funds

What do you mean, you made $57,000.00 on the sale? The ONLY way you could be owed anything after foreclosure would be if there was an overbid surplus as a result of some third party outbidding the lender who was foreclosing. For example, if you owed $100,000.00 on the first trust deed loan, and 50,000.00 on a second trust deed loan, and taxes of $20,000.00 and the holder of the first trust deed was doing the foreclosing, in order for you to get anything, a third party would have to bid a sum greater than the amount of $170,000.00 plus costs of sale and foreclosure, in order for there to be anything left for you! I can tell you that it is VERY RARE that a property owner receives anything out of a foreclosure sale. Further, if the property went to foreclosure in the same example and there were no bids and the property ended up being deeded to the foreclosing lender, you are entitled to NOTHING, even if the property is worth far more than the loan!

Re: foreclosure excess funds

You are entitled to require the trustee who sold the property to immediately provide an accounting. 4 months does seem like an excessively long period of time. At the very least, the money should be held in an interest bearing account. If all the liens have been settled, you need to immediately demand that the trustee turn the excess funds over to you. If they are missing or some funds are not accounted for, you have a pretty good civil suit.

Re: foreclosure excess funds

An attorney who receives funds belonging to a client must remit the funds to the client promptly. I'd recommend writing your attorneys a polite letter simply asking for the funds or an explanation within 7 days, and indicate that you will contact the state bar association if they do not respond.