Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
foreclosure?
In the US, if a house in foreclosure is auctioned off for more than the borrower owes on the mortgage (there is a surplus after all fees are paid), does the borrower receieve the surplus or does the bank keep it (or does it go somewhere else)?
3 Answers
- Spock (rhp)Lv 71 decade agoFavorite Answer
the surplus is applied to any other liens on the property in the order of those liens -- and the borrower gets anything that is left.
note that the costs incurred in foreclosing and selling the house are deducted by the person who wins the foreclosure auction [usually the bank than foreclosed] BEFORE this happens. Interest on the principle due continues to accrue as well.
Source(s): properties investor - mvpwarner13Lv 41 decade ago
Spock is basically right. It goes to the bank who holds the mortgage/deed of trust to pay all interest, principle, foreclosure costs, and monies advanced on your behalf (taxes, insurance, etc). The surplus then goes to the next junior lien holder, down the line. If there is any left it goes to the borrower.
