What does a surplus fund available mean after a foreclosed house was sold by a 3rd party and the bank was paid off?
Question Details: I would like to know what it means when a letter states that a sale price of the foreclosed house was sold for more than the amount paid on the mortgage department and shows there is a surplus funds available to the defendents which are the administrators, lawyer, IRS and state revenue department?
It actually means what it sounds like: there is a surplus of money because the house sold for more than was required to pay off the mortgage. That surplus is available first to pay certain high-priority (as defined by the law) debts, like to the IRS, state tax agency, and the administrators and lawyers who worked on the matter, all whom can put in and justify their claims. Anything left after that would go to the house's former owners.
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