Mortgage Surplus Money---Really?
Posted by: Carleton Sheets in unclaimed funds, refund, Foreclosure on Aug 28, 2009.
One of my staff members in our Illinois office recently sent me this article from the Chicago Tribune about unclaimed funds---mostly from the 1990s and pre- 2007 housing boom--- that are “sitting” in a mortgage surplus account.
Now, keep in mind when you read the Tribune’s article that the $18 million surplus isn’t a statewide surplus. The millions of dollars from unclaimed profits on foreclosures are just for Cook County, Illinois … home to over 43% of Illinois residents, including Chicago.
Illinois’ foreclosure laws do have provisions for surplus funds involving foreclosures. To paraphrase: If the sale of the foreclosed real estate resulted in a surplus, junior lienholders claims’ would be honored in the order that they were filed; the homeowner is entitled to the rest.
Every state’s laws are different regarding foreclosures, but I urge you to look into yours … especially if a foreclosure was involved and there was equity in the property at the time of foreclosure.
I’m interested if anyone---or someone you’ve heard of---in Illinois or across the U.S. has been successful in recovering any surplus foreclosure funds. Please share your story with me …
