Home Foreclosure Laws In California
July 27th, 2007
Home Foreclosure Laws In California
Question: Proceeds from a foreclosure sale in California?
If a lender in the 1st position foreclosed on a home, do they need to pay the excess proceeds (home was sold for more than the 1st loan) to the previous owner and 2nd position holders?
Is there any laws on this?
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Answer: All secondary lienholders must file with the foreclosing lienholder (first mortgage) for compensation. If they can't reach a deal, the case goes to a judge who decides who gets what. At that point, all decisions are final.
The property then goes up for auction at the county courthouse to the highest bidder. If the bank chooses, they can have an agent at the courthouse who will bid on the property in the bank's behalf. If the bank is the highest bidder, they seize the property and put it on the market as a foreclosure sale. When the sale clears escrow, the secondary lienholders get what was agreed upon or ordered by the judge.
CNN on Staying in Your Foreclosed Home
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