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  1. #1
    Join Date
    Jul 2008
    Posts
    6

    Default HFC Kept Proceeds After Trustee Sale

    My question involves real estate located in the State of: Washington

    My dad died September 2007 in the VA hospital from complications from cancer. I have guardianship of my mother who is in a nursing home and suffers from alzheimer's disease.

    My parent's only assets were their home which they had a first and second mortgage on. I could not afford to pay off the mortgage so the home went into forclosure and was sold at a Trustee's sale in April. The home sold for $127,800, after the mortgage payoff and fees ($83,055) the proceeds that we expected to go to my mother are about $44,745.

    Today I was informed by the mortgage company (HFC) that the title had been transferred to HFC and they would not be distributing any proceeds to my mother.

    I asked the legal department for something in writing that would explain this, I am very confused, they said it was not their policy to send out anything in writing.

    What the heck is going on? I can not believe that they can get away with this. Please advise.

  2. #2
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: HFC Kept Proceeds After Trustee Sale

    Quote Quoting jigair
    View Post
    My question involves real estate located in the State of: Washington

    My dad died September 2007 in the VA hospital from complications from cancer. I have guardianship of my mother who is in a nursing home and suffers from alzheimer's disease.

    My parent's only assets were their home which they had a first and second mortgage on. I could not afford to pay off the mortgage so the home went into forclosure and was sold at a Trustee's sale in April. The home sold for $127,800, after the mortgage payoff and fees ($83,055) the proceeds that we expected to go to my mother are about $44,745.

    Today I was informed by the mortgage company (HFC) that the title had been transferred to HFC and they would not be distributing any proceeds to my mother.

    I asked the legal department for something in writing that would explain this, I am very confused, they said it was not their policy to send out anything in writing.

    What the heck is going on? I can not believe that they can get away with this. Please advise.
    I am sorry to hear about your problem. Well in a foreclosure sale the bank takes back the property. They own the property as of the sale date.

    If the bank sells the property for a profit or a loss it is the banks property. Some tax sales will refund the overage to the prior owner. However, this was a foreclosure.

    After the bank takes title to the property it is theirs to dispose of and profit from any amount over what was owed to them. I am not sure why you would think that they are your parents partners in the transaction.

    Your parents lose all right title and interest in a foreclosure sale and the new owner, in this case the bank has every right to keep the money. I know that this is not what you wanted to hear, but this is how it works, sorry.

  3. #3
    Join Date
    Jul 2008
    Posts
    6

    Default Re: HFC Kept Proceeds After Trustee Sale

    Thank you for your response, I appreciate it.

    When my dad first died, I visited the local branch of HFC and spoke with the branch manager. He was the one that told me if there was an excess amount after the mortgage and fees were paid, it would go to my mother.

    I know I should of hired an attorney but there were no funds available.

    Regards,

    Jigair

  4. #4
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: HFC Kept Proceeds After Trustee Sale

    Are you stating that the purchaser at the foreclosure sale resold the house at a profit, or that there was a bid at the foreclosure sale that was $44,745 above the balance of the outstanding mortgage and costs of foreclosure and sale?

  5. #5
    Join Date
    Jul 2008
    Posts
    6

    Default Re: HFC Kept Proceeds After Trustee Sale

    I had a "money finder" call me today and tell me that there were proceeds from the trustee sale of my parent's house in the amount of $22,000. For 30%they will go to court and obtain the money for my mother. They are sending us paperwork to sign.

    I called the Clark County Courthouse in Washington State and spoke to the clerk. She said there was indeed $22,000 available; she did not see any leins against it. She said they needed a judge to sign an order to release the funds. She said we could do it ourselves or we could hire an attorney.

    Can anyone tell me how to proceed? I live in Oregon so it would probably be better to hire an attorney. What about the guy who wants to charge me 30%?

    Thank you

  6. #6
    Join Date
    Jul 2008
    Posts
    6

    Default Re: HFC Kept Proceeds After Trustee Sale

    Quote Quoting aaron
    View Post
    Are you stating that the purchaser at the foreclosure sale resold the house at a profit, or that there was a bid at the foreclosure sale that was $44,745 above the balance of the outstanding mortgage and costs of foreclosure and sale?
    It was resold for a profit

  7. #7
    Join Date
    Sep 2004
    Posts
    160

    Default Re: HFC Kept Proceeds After Trustee Sale

    Quote Quoting jigair
    View Post
    I called the Clark County Courthouse in Washington State and spoke to the clerk. She said there was indeed $22,000 available; she did not see any leins against it. She said they needed a judge to sign an order to release the funds. She said we could do it ourselves or we could hire an attorney.

    Can anyone tell me how to proceed?
    You apparently need to bring an appropriate motion before the court. Perhaps the clerk can better explain the process, or give you a sample motion from another file that you can use as a model for your own motion.

  8. #8
    Join Date
    Jul 2008
    Posts
    6

    Default Re: HFC Kept Proceeds After Trustee Sale

    The clerk was not very helpful in this area. She told me to research it :-)

  9. #9
    Join Date
    May 2008
    Location
    Louisville, KY
    Posts
    1,877

    Default Re: HFC Kept Proceeds After Trustee Sale

    Go down to the courthouse and talk very nicely to the clerks. If you explain the situation well, perhaps they will be kind enough to walk you through it.

    That 'money finder' sounds kinda sleazy.

    Good luck!!

    ~Christina

  10. #10
    Join Date
    Jul 2008
    Posts
    6

    Default Re: HFC Kept Proceeds After Trustee Sale

    I found an attorney to file the motion for us. She is charging $200 an hour and expects it to take no more than 4 hours. That is quite a savings from the "money finder" and I feel very confident in her skills.

    Thanks to all that took the time to give me suggestions and advice.

    jigair

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