Legal Question in Real Estate Law in Connecticut
If a foreclosed property sells for more than what is owed, who receives the additional funds?
Asked on 4/10/11, 2:35 pm
1 Answer from Attorneys
Christopher Hite
Rosenberg, Whewell & Hite, LLC
Technically, if its a foreclosure by sale and the foreclosure is initiated by the first mortgage company, the property owner would get the net proceeds under payment of Committee fees, foreclosing party fees, expenses, and payment of junior liens. The foreclosing party fees and Committee fees and costs can run incredibly high, and therefore it is rare that proceeds are available unless there is significant equity.
Answered on 4/11/11, 3:35 pm