In Foreclosure? Make sure you get your excess proceeds (equity)

Did you know you are entitled to your excess proceeds (equity) when your home is foreclosed? Be sure you know how to prevent these proceeds from being skimmed off by realtors- here’s how it works:

  • The Trustee deposits the excess proceeds with the court in the county where the foreclosure occurred and notifies the borrower of the existence of the excess proceeds. 
  • IT IS UP To the borrower to file the proper documents with the court and to notify all interested parties of the existence of the proceeds. 

  • Once this happens, the court will schedule a hearing to determine who is entitled to the proceeds.  Private attorneys and recovery services can charge up to 50% of the proceeds for going through this procedure.  However, this is something the borrower can do on their own.  

STEPS FOR HOMEOWNERS

1. Contact the Trustee for the list of interested parties.
2.  Fill out motion to disburse excess proceeds, order to disburse, and notice of hearing at the Court Clerks.
3. Notify interested parties
(All parties to whom the Trustee mailed notice of the excess proceeds- you Must notify them by either Personally serving First-class mail and either certified or registered mail, return receipt requested.
4. Appear at hearing
5.Get signature on the order

6. Submit the signed order to the Clerk.
To obtain forms for this process, contact the courthouse in the county in which your foreclosure is taking place, or contact Northwest Justice Project for help!