Equity. - Posted by Robert Harrison

Real Estate Investing Real Estate Law
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Posted by dealmaker on July 28, 2006 at 18:33:34:

AFAIK the lender (bank) is not allowed “undue enrichment” on TRUSTEE’S SALES. But then there generally isn’t much equity in TX SFHs.

First, this is TX, pretty well known to not have much appreciation (I know, someone will pop in here with the recent article in “Fortune” or “Business Week” that showed 8%+ year over year in SAT, DFW and a few other markets, but before you believe that statistic, try backing out the new construction and see what the real number is!), also lenders are notoriously slow to enforce their rights, often taking up to 8 months of letters before getting around to the actual sale, and of course the lender’s attorneys are known to be a bit on the expensive side.

All in all if there’s much equity in anything someone on this site or others will have found it out and gotten the deal before the sale. Otherwise it’ll be sold on the courthouse steps for the loan balance plus late charges and attorney’s fees and there will be negative equity.

dealmaker

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Equity. - Posted by Robert Harrison

Posted by Robert Harrison on July 28, 2006 at 16:31:45:

HEllo. My questions is about the equity that was in a foreclosed home. Where does that equity go and how can I help someone obtain there equity after they have foreclosed. This is a service I would like to provide as an investor in Texas.
Thanks>

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Re: Equity. - Posted by Natalie-VA

Posted by Natalie-VA on August 02, 2006 at 17:57:40:

Robert,

The equity goes back to the owner. The obvious question for you is why would they need your help if they are already entitled to the money?

I had a recent conversation with a foreclosure attorney who said that some other attorneys that he knew were starting to receive “assignments of interest” in people’s foreclosure proceeds. He said that if he received any of these, he would probably tend to disregard them. I’m not sure of the legalities of any of this.

–Natalie