Divorce And Foreclosure
If you own a home here in California and you are currently going through a divorce and the home is also facing foreclosure, what are your options and what would happen if the property actually is sold in foreclosure? First, if the property is sold in foreclosure the opening bid on the property will be only what’s owed on the loan.
So any surplus funds, so let’s say half a million dollars is owed on the loan and the property sells for a million dollars. There’s $500,000 in surplus funds, which all should be equity in the property. What would happen with those monies after that? Typically when someone’s going through divorce, there is a marriage settlement agreement, and that would define who’s going to get the money through the divorce, or your attorneys would work out a resolution in that situation. But at the end of the day, it would go to you or your spouse or both of you. It would not revert back to the bank. So you would be legally entitled to any surplus funds if your property was unfortunately foreclosed upon while you’re going through a divorce
