Legal Question in Real Estate Law in Texas

Disbursement at closing on Foreclosed property

I was wondering where the excess funds go to on a Home Foreclosure. If the total payoff on the property is at $110,000 and the home closed in escrow for $200,000. Where does the excess money go? The property in question is in Dallas Texas. I was told that the excess money goes to the State of Texas. I was also told that those funds are available to the person who just lost their home because the Mortgage Lender can only collect the balance due on the note plus the legal fees and real estate brokers fees.

Please advise

Anthony


Asked on 5/01/08, 12:41 pm

1 Answer from Attorneys
David Leon David L. Leon, P.C.

Re: Disbursement at closing on Foreclosed property

The money goes in the following order:

Taxes, first lien holder, junior lien holders (in order of filing) then to the original borrower. If there were significant excess funds then the funds would be placed in the registry of the court. In order to get them, you need to petition the court to have them released to you.

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Answered on 5/04/08, 10:22 am


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