Upcoming Foreclosures

In a real estate foreclosure auction what happens to the excess funds over the opening bid amount?

Public Comments

1. If the property is sold at auction for more than the amount of the mortgage, the excess funds are used first to pay off the foreclosing lender's legal fees and court costs, then to pay off any other creditors (second mortgagees, judgment creditors, etc.) and finally any excess remaining goes to the former property owner.