Legal Question in Real Estate Law in California
Foreclosures
In the event of a foreclosure if the principal balance plus costs is, for example $50,000 and the property foreclosed on sells for $200,000 who does the difference go to?
3 Answers from Attorneys
Re: Foreclosures
After any valid liens against the property are paid, the owner gets the balance.
Re: Foreclosures
First goes to any subsequent liens or loans, in order of recording priority. Any balance after payment of these expenses goes to the former owner.
Re: Foreclosures
If the property sells at the foreclosure sale for $200K, the principle, unpaid interest and the costs are paid first, and the balance goes to the owner who lost the property.
If there is no buyer at the foreclosure sale, and it goes back to the bank (or mortgage holder), then they own the property at that price. If they then sell it for more, they keep the money.
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