How to accelerate distribution of excess funds after foreclosure

[Andy Gill]

I bought an HOA foreclosure at auction and paid about 24k over the foreclosure amount. The attorney representing a mortgage lien on the house is being coy, saying that they'll send me a payoff for the full mortgage amount but the mortgage company hasn't hired them to go after the surplus funds. They've initiated their own foreclosure, and I'm sure I have months to sort it out, but I'd love to know how to get the mortgage company to initiate their claim so I can pay this off and get the house sold?

[Chad U.]

Originally posted by @Andy Gill:

I bought an HOA foreclosure at auction and paid about 24k over the foreclosure amount. The attorney representing a mortgage lien on the house is being coy, saying that they'll send me a payoff for the full mortgage amount but the mortgage company hasn't hired them to go after the surplus funds. They've initiated their own foreclosure, and I'm sure I have months to sort it out, but I'd love to know how to get the mortgage company to initiate their claim so I can pay this off and get the house sold?

Since the HOA was an inferior position to the mortgage lien, the mortgage company is not entitled to the surplus funds. Those funds can be claimed by any other subsequent lien holders after the HOA, or the former owner if there are none.