Knowledgeable Surplus Proceeds Recovery Attorney In Maryland
Losing your real property through a foreclosure sale or tax sale is a very difficult thing for any homeowner in Maryland. Many people don’t realize that when a property sells for more than the mortgage debt, HOA judgment, or tax lien, there is an excess. That excess is known as the excess proceeds or the overage.
At Stan Derwin Brown Law Office, LLC, in Largo, Maryland, our lawyers help former property owners with their surplus proceeds claims. Attorney Stan Derwin Brown brings nearly 38 years of real estate law experience to protect your rights.
Working with a skilled surplus proceeds recovery attorney can help you recover the maximum surplus proceeds due to you after a court sale.
What Are Surplus Proceeds And How Do They Occur In Foreclosure Sales?
Surplus proceeds occur when the proceeds of a property sale at a judicial foreclosure overage sale, a nonjudicial foreclosure surplus auction, a sheriff sale surplus proceeds event or a tax deed sale surplus auction exceed the total debt.
During a trustee sale or tax foreclosure sale, the purchase price first pays the first mortgage, then the delinquent property taxes, then the accrued interest and then the legal costs. Any remaining balance is unclaimed foreclosure proceeds or a property tax sale overage.
As the former owner, you own the surplus proceeds and therefore have the right to ask the Court Auditor for a formal distribution.
How Can An Attorney Help Parties Collect Surplus Proceeds From The Sale Of Property They Formerly Owned?
Collecting surplus funds after a sale is a complicated process that requires formal court filings. A specialist legal professional on your side can protect you from inevitable delays and predatory third-party collection agencies.
Attorney Stan Derwin Brown will review the land records, check the junior liens, file the court motions and attend the audit hearings on your behalf. If you’re claiming surplus proceeds after a foreclosure or a county tax sale, he will handle competing claims and advise you on the most efficient way to claim your surplus proceeds and ensure you receive your full legal payout.
How Long Do I Have To Claim Surplus Proceeds After A Foreclosure Or Tax Sale?
Parties have a strict 10-day window from the filing of the auditor’s report to file formal exceptions. Former property owners, on the other hand, have up to three years after the final ratification of the auditor’s account to file a motion to claim surplus proceeds under Maryland Rule 14-216(b).
Who Is Entitled To Claim Surplus Proceeds, And Do Some Claimants Have Priority Over Others?
To determine whether a foreclosure surplus is payable to any particular party, you have to look at the title and the recorded liens on the property. Maryland law provides a very clear hierarchy as to the priority of claims to any surplus proceeds:
- Former title owners: The principal owner in respect of legal title to the property at the time of sale.
- Secondary lienholders: Second mortgage lenders and judgment holders holding recorded liens against the property.
- Government tax entities: Local, state or federal government tax agencies with valid recorded tax liens against the property.
- HOA associations: Homeowners Associations (HOAs) and Condominium Associations with valid, recorded assessment liens under the Maryland
Contract Lien Act are secondary lienholders, and the statute and the date of recording govern their priority over other junior liens. Because junior lienholders so often assert competing claims against the proceeds, it is essential to have a skilled surplus proceeds recovery attorney. Attorney Stan Derwin Brown reviews every claim, challenges lien validity and ensures the proceeds are distributed in accordance with Maryland law.
Contact Stan Derwin Brown Law Office, LLC, Today
If your property was sold at auction, you may be entitled to thousands of dollars in surplus. Don’t go through the recovery process on your own; don’t let some third-party collector take your money. Attorney Stan Derwin Brown is here to help you today. Call our office at 301-686-8648 or fill out our online form to set up your consultation and get your money back quickly.