If my home was forclosed on and sold at auction for more than I owed, what happens to the money over the amount that was owed to the bank?
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If my home was forclosed on and sold at auction for more than I owed, what happens to the money over the amount that was owed to the bank?
Asked on November 27, 2012 under Real Estate Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
The excess balance should be returned to you--the bank is only entitled to recover the remaining amount of the loan. Note however, that certain fees and expenses of the foreclosure process and auction may also be be taken out of the sale proceeds; and it is likely that the bank can also recover some of its legal fees or expenses, too (check the loan agreement(s), which should indicate what the bank can recover in the course of a foreclosure).
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