Simply put, when a property is sold at foreclosure auction,trustee’s sale or sheriff’s sale, the amount of money paid by the winning bidder over and above the outstanding mortgage balance or judgement and other expenses is considered excess proceeds.
SIMPLIFIED EXAMPLE: A property with an outstanding mortgage balance of $100,000 sells at trustee sale for $125,000. The winning bid is $25,000 above the mortgage balance, therefore there could be $25,000 excess proceeds from the sale. The actual amount of the excess proceeds is dependent on many things, such as loan position, liens, judgments, expenses, etc.
Please note that it is best to speak with us directly regarding the complexities of sheriff sale excess proceeds. Contact us about excess proceeds here.