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§ 33-727. This statute generally provides that proceeds from a mortgage foreclosure sale go first to creditors according to their priority, and only to the owner after creditors are paid in full.
Will I Get Money Back After a Foreclosure Sale? If a foreclosure sale results in excess proceeds, the lender doesn't get to keep that money. The lender is entitled to an amount that's sufficient to pay off the outstanding balance of the loan plus the costs associated with the foreclosure and salebut no more.
The auction notice, or Notice of Sale, is your final notice that the lender intends to sell the property at auction. The county prints the location, time and date of the trustee's auction on the Notice of Sale. It also contains the name and contact information for the trustee in charge of the sale.
The following states have anti-deficiency laws: Alaska, Arizona, California, Connecticut, Hawaii Iowa, Minnesota, Montana, Nevada, New Mexico, North Carolina, North Dakota, Oregon, Washington, and Wisconsin.
How much is your home worth? Regardless of your state's deficiency laws, if your home will sell at a foreclosure sale for more than what you owe, you will not be obligated to pay anything to your lender after foreclosure. Your lender is obligated to apply the sale price of your home to the mortgage debt.
In Hawaii, most homeowners who stop making their mortgage payments will face a judicial foreclosure. In the past, the majority of foreclosures in Hawaii were nonjudicial. But lenders switched to judicial foreclosures to bypass Hawaii's Mortgage Foreclosure Dispute Resolution (MFDR) program.
To redeem, you have to pay off the full amount of the loan before the foreclosure sale. Some states also provide foreclosed borrowers with a redemption period after the foreclosure sale, during which they can buy back the home. Hawaii law, however, doesn't provide a post-sale right of redemption.
There are currently 12 non-recourse states: Alaska, Arizona, California, Connecticut, Hawaii Idaho, Minnesota, North Carolina, North Dakota, Texas, Utah, and Washington.
Home mortgagesthough generally recourseare non-recourse in 12 states: Alaska, Arizona, California, Connecticut, Idaho, Minnesota, North Carolina, North Dakota, Oregon, Texas, Utah and Washington.