When a home is foreclosed and sold, there is often a surprising yet significant outcome: surplus funds. These funds are the balance left after all the expenses, such as the mortgage, have been paid out. However, recovering such surplus funds is surrounded by myths and misconceptions that do not let rightful claimants act. It is time to demolish these myths and get to the truth so that you can make the right decisions regarding recovering surplus funds.
Myth #1: By law, surplus funds are automatically owned by the mortgage holder.
A myth is that any surplus from a foreclosure sale belongs to the mortgage holder or lender. The truth is that these funds are the property of the former homeowner. If your home was sold for more than what you owed, those extra dollars are legally yours for the taking.
Myth #2: It’s Too Late to Claim Surplus Funds
Most people think it is impossible to reclaim excessive money once enough time has elapsed. Specific time frames depend on the state and local laws, but there is usually ample time to take what is rightfully yours.
At Bellator Consulting LLC, we understand these timelines inside and out and make sure nothing is overlooked.
Myth #3: A further MYTH is that the process is overly complex.
I will not deny that recovering surplus funds entails legal procedures and bureaucracy, but this does not make it impossible.
However, you can make it easier with our expertise at Bellator Consulting LLC. This is because we take care of the intricacies while you concentrate on getting back what is rightfully yours.
Myth #4: You’re Not Entitled to the Funds After Foreclosure
Some former homeowners believe they have no claim to any money after losing their house. But if your property was sold at a foreclosure auction for an amount higher than the balance you owed, then those extra cents belong to you. These funds are created to prevent people who own houses from losing all their property after the home is seized.
Myth #5: It is only lawyers who can recover surplus funds.
Even though it is always helpful to have experienced individuals on your team, you do not have to retain an attorney to regain surplus funds. This is an area that experienced consultants like Bellator Consulting LLC can assist you with, and you don’t have to pay a lawyer’s fee.
Myth #6: There is always a tax implication that comes with Surplus Funds Recovery
The sixth myth is that a firm seeking to recover excess funds will be heavily taxed. It is also important to note that, depending on the situation, the recovery process can have tax consequences. However, every recovery does not necessarily mean one will face a huge tax bill. Speaking with professionals can help you realize what is happening and how much it affects you.
Myth #7: If You Don’t Act, The Government Keeps the Funds
Although some states may transfer unclaimed surplus funds to a government account after a specified period, they are not owned by the government. The funds are still recoverable by the rightful owner for many years. However, it is important not to procrastinate to unnecessarily prevent the situation from worsening.
How We Help You
At Bellator Consulting LLC, we pride ourselves on finding ways to help people get back their excess money. We make our process clear, fast, and adaptive to your circumstances.
Whether this is your first time trying to figure out how to transition or you’ve faced some obstacles, we’re here to help you.
Do not let your funds go unclaimed!
If you have recently been through a foreclosure, the time to act is now. Never allow myths or misconceptions to keep you from what belongs to you in the first place. Contact us today for a free consultation.
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