Show Me The Money

Mortgage Foreclosure Scenario

Suppose you’ve fallen behind on your mortgage payments, and the lender decides to foreclose on your property. The house is sold at a public auction for $210,000, while the outstanding mortgage balance is $140,000. This means there’s a $70,000 surplus that is rightfully yours! However, be aware that expenses like legal fees, auction costs, and other liens might reduce the final amount you can claim.

$210,000 (Auction Sale Price) - $140,000 (Mortgage Balance) = $70,000 (Your Entitlement)

Tax Foreclosure Scenario

Now, imagine you owe $12,000 in property taxes, and your property is sold at a Tax Deed auction for $140,000. The government will take the $12,000 to cover the tax debt. But what about the remaining $128,000? That money is supposed to go to you, but if you don’t claim it promptly, the government will keep it instead.

$140,000 (Auction Sale Price) - $12,000 (Property Taxes Due) = $128,000 (Owed to You)

WHERE DOES THE $128,000 OVERAGE GO?

It Should Belong to YOU! Here’s How It Works…

Once the auction is over, you’ve probably moved to a new home. The government has a duty to notify you about the money you’re entitled to, and they do this by sending a certified letter to your last known address, which is often the home you’ve left behind. This letter typically gets returned as undeliverable, while the deadline for claiming your funds approaches. The government considers its notification obligation fulfilled, leaving you unaware of the significant amount of money you could reclaim. If you don’t know about your funds or can’t access them, the government retains the money indefinitely. If you were in their position, how hard would you search for the rightful owner?