House sold in tax-sale before foreclosure.

[advizemepls101]

My house was sold in a tax sale while I was in Chapter 13 bankruptcy. I am discharged and have not paid my mortgage in 4 months. I have moved to an apartment. Here is my dilemma. I have been notified by several forensic auditors that have found money on my behalf. Well, I found it on my own. It was the surplus from the tax sale. I owe 79,000 on my mortgage. I just received 80,000 from the surplus. Do I pay the mortgage off or go through the foreclosure process. Or can I pay 65,000 and continue paying my mortgage until paid off. I would take the 14,000 and buy a vehicle to keep my interest rate low. Or, would the 'too good to be true' scenario of me keeping the whole lot be possible. Getting an attorney is not a problem but I am trying to save as much money as possible due to other legal issues I have and have expended a lot of funds as of late.

 

[Taxing Matters]

You need to consult your bankruptcy attorney to ensure that your creditors in the bankruptcy would not have some claim to those excess proceeds. You should also see if you have any possibility to redeem the house from tax sale, assuming of course you might still want to live there. Some states allow for redemption after the tax sale, some don't, but since you did not indicate the state I cannot tell you what redemption rights you might have.

 

[advizemepls101]

Thank you for your reply. I have went through all of the above. I only owe on the house. It is well past the redemption as I have already received the $75,000.00+ check. Should I just let the bank go through the foreclosure process. I'm sure they will see I received the surplus. This is Indiana and I'm not sure how this may play out. If I must I will just pay off the mortgage and start anew. I am in a nice apartment and have no interest in the property. Hell, I just owe on a mortgage that is no longer backed by the security of a deed.
i have my Chapter 13 discharge papers as well.

 

[LdiJ]

Thank you for your reply. I have went through all of the above. I only owe on the house. It is well past the redemption as I have already received the $75,000.00+ check. Should I just let the bank go through the foreclosure process. I'm sure they will see I received the surplus. This is Indiana and I'm not sure how this may play out. If I must I will just pay off the mortgage and start anew. I am in a nice apartment and have no interest in the property. Hell, I just owe on a mortgage that is no longer backed by the security of a deed.
i have my Chapter 13 discharge papers as well.

You are saying that you got 75k without the mortgage being paid first? That makes absolutely no sense. The mortgage company has/had a perfected lien on the property and you shouldn't have seen any cash without the mortgage being paid first.

 

[advizemepls101]

You are saying that you got 75k without the mortgage being paid first? That makes absolutely no sense. The mortgage company has/had a perfected lien on the property and you shouldn't have seen any cash without the mortgage being paid first.

I got to the county auditor first I guess. They did say the bank would be notified. Believe me, I am very surprised, I am just holding this check until I am able to pay the mortgage or keep it. unlikely I will be able to keep it though. It was even funded on the same bank my mortgage is through. I am not trying to do anything illegal, however I have paid over $100,000 in interest. I know that doesn't make sense. I've noticed, here of late, all agencies in and out of the government are dropping the ball on all fronts.

 

[adjusterjack]

I have paid over $100,000 in interest. I know that doesn't make sense

It doesn't. Everybody pays interest. It's the cost of borrowing money. Doesn't give you the right to keep money that might not belong to you.

I say "might not" because I don't know if you have any "legal" obligation to turn over the money to the bank.

I suggest talking to your bankruptcy attorney.

 

[justalayman]

Your lender has a legal right to the proceeds. I suggest you not spend any of it (with the possible exception of the $1000 in excess of your mortgage balance) until such time it is beyond any applicable statute of limitations for the lender to claim the proceeds


https://www.in.gov/judiciary/opinions/pdf/02101101cld.pdf

 

[justalayman]

You are saying that you got 75k without the mortgage being paid first? That makes absolutely no sense. The mortgage company has/had a perfected lien on the property and you shouldn't have seen any cash without the mortgage being paid first.

Indiana code actually provides for precisely what has happened.

I.C. § 6-1.1-24-7 is the provision within Indiana’s tax sale statutory scheme that speaks to the surplus issue, and subsection (b) authorizes a claim by the:

(1) owner of record of the real property at the time the tax deed is issued who is divested of ownership by the issuance of a tax deed; or
(2) tax sale purchaser or purchaser’s assignee, upon redemption of the tract or item of real property.

 

[advizemepls101]

Your lender has a legal right to the proceeds. I suggest you not spend any of it (with the possible exception of the $1000 in excess of your mortgage balance) until such time it is beyond any applicable statute of limitations for the lender to claim the proceeds


https://www.in.gov/judiciary/opinions/pdf/02101101cld.pdf

Thank you, I have read this and it is what I thought. I'm not going to cash this check, go to the casino and put it all on black. Temped though. It's still nice to dream, right?
Now, my next question. I have these "Forensic Auditors" saying they have found money and for a 10% fee they will help me receive it. Can I sign the contingency agreement now? I'm not a fan of them. What they do is profit off of people that have went through a hardship. They have hounded me since January and it would be a little funny to see their response on not actually finding money for me. I would not do it if it was only 1%-3%. Heck that would have netted them $7500.00 for nothing more than a few envelopes and about an hour of their time.

 

[advizemepls101]

It doesn't. Everybody pays interest. It's the cost of borrowing money. Doesn't give you the right to keep money that might not belong to you.

I say "might not" because I don't know if you have any "legal" obligation to turn over the money to the bank.

I suggest talking to your bankruptcy attorney.

Thank you, I will be paying off my mortgage. It is actually a Godsend. To have come out of bankruptcy and have enough to pay the total amount owed on the mortgage with $1000.00+ left over is a good thing. I could not ask for more. I will not need an attorney for this, as they would take the $1000.00 and I would be left with nothing. I just want to move on with no more appointments and runarounds.

 

[justalayman]

Thank you, I have read this and it is what I thought. I'm not going to cash this check, go to the casino and put it all on black. Temped though. It's still nice to dream, right?
Now, my next question. I have these "Forensic Auditors" saying they have found money and for a 10% fee they will help me receive it. Can I sign the contingency agreement now? I'm not a fan of them. What they do is profit off of people that have went through a hardship. They have hounded me since January and it would be a little funny to see their response on not actually finding money for me. I would not do it if it was only 1%-3%. Heck that would have netted them $7500.00 for nothing more than a few envelopes and about an hour of their time.

You need to read any contract very thoroughly. I can envision a situation where you could ow them money on the already claimed money.

 

[PayrollHRGuy]

Thank you, I have read this and it is what I thought. I'm not going to cash this check, go to the casino and put it all on black. Temped though. It's still nice to dream, right?
Now, my next question. I have these "Forensic Auditors" saying they have found money and for a 10% fee they will help me receive it. Can I sign the contingency agreement now? I'm not a fan of them. What they do is profit off of people that have went through a hardship. They have hounded me since January and it would be a little funny to see their response on not actually finding money for me. I would not do it if it was only 1%-3%. Heck that would have netted them $7500.00 for nothing more than a few envelopes and about an hour of their time.

I don't see where you listed the state you are in or where the home was. In most states, it is the Secretary of State that holds such funds. You can look on your state's SoS website and likely find the money without the "Forensic Auditors" help.

 

[justalayman]

I don't see where you listed the state you are in or where the home was. In most states, it is the Secretary of State that holds such funds. You can look on your state's SoS website and likely find the money without the "Forensic Auditors" help.

Post 3. I missed it as well.

 

[advizemepls101]

I don't see where you listed the state you are in or where the home was. In most states, it is the Secretary of State that holds such funds. You can look on your state's SoS website and likely find the money without the "Forensic Auditors" help.

I have a check from the county auditor's office. This is in Indiana and the Forensic autitors are no longer needed for this. Maybe they have found other monies for me!!! I can only hope.

 

[PayrollHRGuy]

You can find out here.

https://indianaunclaimed.gov/