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What are excess sale proceeds?
Diane L. Drain, lawyer, consumer advocate, retired law professor, wife and mother
Once the trustee’s sale has been completed there monies left over because the lender who foreclosed has been paid in full. These extra monies are called “excess sales proceeds”. All junior lienholders and the property owner at the time the property was sold have a right to apply for those funds. The Trustee conducting the Trustee’s Sale will deposit (in most cases) the funds with the County Treasurer or Assessor, a complaint will be filed by the Trustee and served on everyone listed on the title policy. At that point the junior lienholders and/or the old property owner can file an application with the Court. There are notice requirements and most likely the court will have a hearing on the distribution of any monies. See Arizona Revised Statutes – 33-812. In order of obtain the funds the applicant must have a signed, certified copy of the final Order from the Court, plus a fee payable to the Treasurer (of Assessor) and a signed W-9.
There are many vultures praying on those who have lost their homes through a trustee’s sale or foreclosure. These vultures are running scams to take most, sometimes all, of the equity which should be paid to the homeowners. There is a lot of equity or “excess sale proceeds” today – given the value of the houses in the 2005-2006 market.
The law Arizona Revised Statutes – 33-812. specifically limits what these vultures are permitted to do (charges, etc), yet most are blatantly ignoring the law and robbing the homeowners of thousands of dollars in hard-earned equity in their home. Despite these laws I have received numerous reports of changes in excess of 50% of the entire amount – with no limit on the maximum charges. Their actions evidence a complete refusal to honor the limits set by law. These folks are prohibited from obtaining a binding contact for at least 30 days after the trustee’s sale, yet they are normally on the doorstep the day after the sale. The requirement to obtain these excess sale proceeds is that you must actually own the home on the date of the trustee’s sale. These vultures know this requirement and approach the homeowner the day or two before the sale offering to buy the home for a small amount. They completely fail to tell the homeowner that there will most like be several thousand dollars available after the sale is complete, but that only the person who owns the home on the day of the trustee’s sale can request these funds. Know your rights and talk to a competent attorney who is experienced and in good standing with the State Bar of Arizona. Ask other experienced attorneys for referrals.
This firm has returned $800,000 to homeowners as excess sale proceeds.
Client Reviews and Comments - Excess Sale Proceeds
Funds that may be available to a homeowner after a trustee’s sale.
Diane, Thank you for the good news and for being nothing less than a “stellar” legal representative, a great and understanding sounding board for me during a most difficult and emotional time period, and a most patient person with all my various questions. Say thanks also to Jay for me, he was also of great assistance in the documentation process and in answering procedural process questions regarding the required documentation needed to complete the file for submission and receive the funds.
C.M. (excess sale proceeds)May, 2016
This was a painless experience. Diane and Jay took complete care of me and all questions were answered in a timely manner. I would highly recommend!
D.A. (excess sale proceeds)August, 2015
EXCESS SALE PROCEEDS: P. and I would like to thank you both, especially you Jay, for all the work you did in obtaining our Excess Funds check today. You somehow managed to get this done between January and June and I know how persistent you were. P. and I would like you to know that you can use us a a referral for Excess Funds clients anytime you need to. We were very impressed with what you did and the knowledge you had in getting the job done. It didn’t take me long to realize there are a lot of swindlers out there offering to do the same thing, but when I talked to you back in December, 2013 Diane, and had read your many articles on Excess Funds, I really felt I could trust you. That was one of the best decisions I’ve ever made and we will always be grateful for how you’ve helped us. When you’ve had to walk away from the home you love, being able to secure the Excess Funds through a firm you can trust makes all the difference in the world. Great job!