Who will receive the profit on a foreclosed residential property that is worth more (mkt value) than what is owed on the loan

Asked 10 months ago - Fairfax, VA

My house is being foreclosed on (to be sold on the Co. steps). After bad advice, more bad advice and thousands of dollars in service fees; I am done, I tried my best to save it. My question is, my mortgage loan is $300k but the market value of my home is $500k +/-. Homes in my neighborhood are quickly selling at that price. If there is any profit from the sale on the Co. steps, who gets that amount? The bank?

Attorney answers (2)

  1. Daniel Mark Press

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    Contributor Level 14

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    Answered . The borrower gets the surplus, if any, after paying off all liens and all costs of sale (although you may need to submit a claim to the foreclosure trustee to get them - contrary to the other post, no involvement of the sheriff in Va. foreclosures). But understand that a foreclosure sale is unlikely to generate top dollar. You would be well advised, if it is really worth that much, to sell it through a real estate agent. Even if sold for slightly less than full value to get a quick sale, that will be more than the foreclosure would generate. If you actually have a contract without any contingencies, most lenders will stop the foreclosure sale, and if they refuse you can file a bankruptcy case to stop it and make the private sale happen.

  2. Christine B. Adams

    Pro

    Contributor Level 20

    Answered . The homeowner should receive any proceeds from the sale of the property that are remaining after the liens and fees and cost are paid. The sheriff will issue a report to the courts

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