What You Can Do To Get A Refund From Your Lender After Losing Your Home To Foreclosure Most borrowers don't understand this, but there are rules and regulations in place that stop your lender from taking advantage of you, in a foreclosure situation. Every day, I hear: "My lender just wants to foreclose because my house is worth more than the payoff". In a small number of cases, this may be the case, but when following the rules, your lender must sell the home for its fair market value and you are entitled to the difference between the payoff and the amount sold. Lenders may try and take advantage of the fact that most borrowers don't know the laws when it comes to foreclosure, but we'll help you understand your rights and hopefully get some money back if you've lost your home.
The main problem we've seen is when a lender sells the home as quickly as possible, just to pay off the note. They always seem to forget about the rights of the homeowner after the home is foreclosed on. For example, lets assume your home is worth $300,000, but paying off your mortgage is only $275,000. Your lender has a legal responsibility to sell the home for it's fair market value, which is $300,000. This would mean you get $25,000 back. What is more common is the bank accepts the first offer they receive of, lets say, $250,000, then they sue the home owner for a $25,000 deficiency judgment.
In a case where the mortgage company is obligated to pay $25,000 to the homeowner, instead they end up stealing the home and suing the homeowner for an additional $25,000. There is absolutely no reason the homeowner should have to pay for the the mortgage company's neglect to sell the home at the fair market value.
If you are facing foreclosure, or if you have already lost your home to foreclosure, then it's imperative that you know the exact value of your home. You may be owed thousands of dollars, in the event your home is, or was, sold for less than it was worth. There are many cases where previous homeowners have gotten settlements in excess of $50,000! Determining your rights and the laws when it comes to fighting your lender is likely one of the best ways of avoiding foreclosure altogether. If you didn't understand your rights and you were taken advantage of, there is a chance you can get your home back, or at least sue the lender for their misconduct.
A great way to get the value of your home is to is to get a full appraisal from a local, qualified appraiser. However, this can be somewhat costly, since you probably just got out of foreclosure. It's also hard, after a foreclosure, to justify "throwing good money after bad". My best advice is to get a Broker Price Opinion (BPO) or Property Valuation from another qualified source. Our website can provide you with a good local company if you need one. I do not recommend using a website service that have free "appraisals", because they are rarely accurate and do not take the condition of the home, or improvements into consideration.
Ultimately, if your lender broke the rules when went through the foreclosure process, or sold the home afterwards for too low of a price, then you need to contact us immediately! We can not just sit back and let the lenders get away with ignoring the rules and taking advantage of helpless homeowners. Take action immediately and we'll help you force your lender to answer for their wrongdoings! Nick is the developer of the ForeclosurefishStop Foreclosure Blog, website helps homeowners who are facing foreclosure and need help stopping foreclosure. sites for sale