Does the former homeowner get the excess funds from the foreclosure sale? 2 Answers as of December 10, 2013

Non judicial foreclosure in CA 7/11. Filed BK 8/10 which was final 1/11. Foreclosed by 1st TD. The heloc non-purchase money 2nd should have become an unsecured debt after the foreclosure. It was listed in the already finalized BK so therefore cannot collect.

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Janke Legal Consulting | Bruce C. Janke
The law requires the lender to refund to the trustor the net surplus from the trustee's sale, that is the net difference between the sale price and the loan balance. (Civil Code section 2924k, subdivision (a).) The tricky word, though, is "net." Lenders typically suck up most or all of the remaining equity with a battery of appraisal fees, maintenance fees, escrow fees, transfer fees, trustee's fees. attorney fees, taxes, insurance premiums, and so on. You are entitled to a written accounting showing the sale price, itemized deductions, and the net balance, if any.
Answer Applies to: California
Replied: 12/10/2013
Danville Law Group | Scott Jordan
Unless you made a motion to remove the secured lien against the property, the HELOC remained a secured debt to the property. All that happened in the bankruptcy is that the HELOC's ability to seek payment from your directly was discharged.
Answer Applies to: California
Replied: 12/10/2013
Click to View More Answers: