strict foreclosure vs bankruptcy

[faithnlve]

What is the name of your state? Vermont. I have a neighbor going through a strict foreclosure and bankruptcy. I cannot find the statutes for him, but when there is a strict foreclosure and the bank takes the house back, does he get any equity left over from the sale? The lawyer for the strict foreclosure said no, that the bank sold the house for only 2500 more than what he bought it for and that the strict foreclosure over rode any equity available to the owner even though he filed for bankruptcy. thanks

 

[HomeGuru]

What is the name of your state? Vermont. I have a neighbor going through a strict foreclosure and bankruptcy. I cannot find the statutes for him, but when there is a strict foreclosure and the bank takes the house back, does he get any equity left over from the sale? The lawyer for the strict foreclosure said no, that the bank sold the house for only 2500 more than what he bought it for and that the strict foreclosure over rode any equity available to the owner even though he filed for bankruptcy. thanks

**A: that was not the real reason. Tell neighbor to demand a full accounting in writing.

 

[faithnlve]

quick question

the house was sold. The lawyer for the mortgage claimed that since it was a strict foreclosure any money from the sale went to lawyer fees. So going bankrupt has nothing to do with strict foreclosure. The house is gone, so is the money. Are you saying this is not right?

 

[HomeGuru]

the house was sold. The lawyer for the mortgage claimed that since it was a strict foreclosure any money from the sale went to lawyer fees. So going bankrupt has nothing to do with strict foreclosure. The house is gone, so is the money. Are you saying this is not right?

**A: the writer does not know.