Since the economic recession of 2008, the real estate market may have felt like a non-stop roller coaster ride for current or prospective home buyers. Sadly many individuals lost their home and continue to do so, often for reasons beyond their control.
So, is there a silver lining? For some, the answer might be yes! How could there be a silver lining to the devastating experience of losing your home? Well let’s explore this scenario with an example.
John and Mary owned a home, but tragically both lost their jobs at the same time. After months and months, they attempted to catch up, but could never get out of delinquency. In the State of Washington, if you have a mortgage, you also likely have a Deed of Trust (discussed in a later post). This allows lenders, usually a bank, to foreclose on a home without the need of going to court, aptly named a non-judicial foreclosure. Let’s say the bank actually followed the rules (bear with me on that) and the home is sold at auction. To their surprise, John and Mary’s home sold for more than $30,000 than was owed on the home mortgage.
So the big question is, who keeps the money? If John and Mary do not have a second mortgage, or any other creditor claims, then they do! Free and clear. They are entitled to any surplus!!
But where is the money? In Washington, any surplus funds from the home sale will be placed in a court registry and await creditors’ claims. If John and Mary make the intelligent decision and hire someone with experience (like Late “Knight” Legal) then after making the appropriate court filings and appearances, the court clerk will issue a check and John and Mary will get the equity in their home they rightly deserve!
So, if you think you might be in the shoes of John and Mary, give Late Knight Legal PLLC a call at 253-656-4475.
If you need help with a legal issue right now contact Paul Boudreaux and schedule a consultation. Late Knight Legal stays open after business hours to meet with you on your time. We fight for you while the competition sleeps.