Home foreclosures are lengthy and emotional processes that create considerable uncertainty and confusion. Despite this significant loss, you may be entitled to surplus funds if there is money left over after the sale. This can help offset the impact of the foreclosure on your life. A surplus funds attorney serving Vancouver, WA can help you navigate the legal process and simplify the process.
At Symmes Law Group, we can protect your rights after a foreclosure and help you recover money you may be entitled to receive from the sale of your house. Our firm provides trusted counsel throughout your case so you can be confident that all legal requirements will be fulfilled. We answer your questions and provide clarity to help you take the right step forward.
Experience the Difference Symmes Law Group Makes in Your Case
Symmes Law Group provides knowledgeable service designed to help you recover the maximum amount of surplus funds possible. We have extensive experience handling a variety of financial needs related to real estate, business, bankruptcy, and debt settlement. We help clients through these difficult and complex legal matters while protecting their interests so they can regain financial stability and peace of mind.
Available in Person, Over the Phone, or via Zoom
We meet with Vancouver surplus funds clients in our office, over the phone, or via Zoom calls. We understand that everyone’s availability and needs are different, and we strive to make the process as easy and convenient as possible. We take the time to get to know you and understand the circumstances you are facing. We work closely with you to ensure paperwork is submitted properly and navigate any complications that could arise.
Exceptional Service and Communication
Our team is committed to exceptional service in everything we do. When you partner with us, you have a highly qualified team behind you who prioritizes your needs from start to finish. We frequently communicate with you so you are always aware of the progress that is being made to recover your surplus funds. Our firm answers all your questions and ensures you feel comfortable throughout the process.
What Constitutes Surplus Funds in Vancouver, WA
When a house goes into foreclosure, it is sold at auction to settle the unpaid portion of the debt on the home. The proceeds are primarily used to pay off the mortgage and taxes, but additional proceeds may go toward liens and other applicable debts. However, if there are proceeds left after debts have been settled, they can be credited back to you as surplus funds per RCW §61.24.090. However, there are a few points you need to know about surplus funds:
- Surplus funds will be held by Clark County’s Superior Court
- You must submit a request to recover your surplus funds
- Hire a lawyer in the state where the foreclosure took place, and partner with them to recover your surplus funds
- You may not be the only one to claim the surplus funds, but you must show your right to the funds
- It can take an average of 30-45 days to obtain surplus funds
- You may be expected to pay administrative fees when recovering your funds
- Complications may arise that require an experienced legal hand to resolve
Claiming surplus funds involves many steps and is governed by complex legal procedures. Understanding the process can streamline it and make it feel more manageable. It is important to have surplus funds attorneys to guide you through this process and help limit further loss of funds to other parties.
Types of Foreclosures That May Result in Surplus Funds
There are generally two types of foreclosures in Washington: judicial and non-judicial. Not only do these processes differ from one another, but they can also impact how you receive the extraneous proceeds you are owed. It may even impact the final amount you are able to recover. Below is a closer look at both types of foreclosures.
Judicial Foreclosure
In a judicial foreclosure, the court handles the selling process in accordance with RCW 60.11.070. The court ensures that procedures are properly followed so all parties are paid, and outstanding debts are settled. They also make sure that surplus funds are held and the recipient is notified. Any party seeking to claim these funds must file a motion with the court to initiate the process.
Non-judicial Foreclosure
In a non-judicial foreclosure, the process is handled privately. Typically, the lender and a third party can foreclose on the property directly in the event that an individual is unable to meet the financial obligations on their home. If surplus funds are left, then they are handed over to the Superior Court to hold until they are claimed. Individuals must still submit a motion to recover.
Select Parties are Entitled to Recover Surplus Funds
To recover surplus funds after a foreclosure, you must have a legal right to claim them. Most generally, you, as the property’s previous owner, have the right to claim the remaining proceeds. However, your heirs, title owners, and creditors related to the property may have a right to submit a claim as well. In the event that both you and a creditor submit claims on the surplus funds, creditors will prioritize the remaining debts so that they can be settled.
If there are any unclaimed funds, those may be held by Washington’s Western District Court. Funds may go unclaimed due to incorrect contact information, death, or other reasons. Eligible individuals may submit an application to the court requesting the funds they are entitled to receive. If you are unsure if you have funds to claim, you can check the monthly court report listing unclaimed funds and talk with your surplus funds attorney serving Vancouver, WA.
What to Expect When You File a Claim for Surplus Funds
It is important to be aware that while you may be entitled to any surplus funds available after debts have been settled, there is still a process you must follow. You may also not be the only one who has a claim on those funds. As such, you should hire a lawyer before taking the first step in the process. They are equipped to help you get surplus funds after a foreclosure sale in Washington and prepare you for what to expect during the process, which includes:
- Verify You Have Surplus Funds: While you should be notified, there is always a chance you may not see a notice about surplus funds. As a best practice, it is recommended to contact Clark County after the foreclosure sale on your house to inquire if there were excess proceeds, along with their value.
- File a Motion: The next step is to submit a motion declaring your intention to claim the surplus funds. You will also need to demonstrate that you are entitled to recover the funds you are requesting. For this, you will need to provide documentation that you were the previous owner, any relevant foreclosure documentation, and any additional records the court may request.
- Notification of a Claim: Other parties could also have a legal right to the surplus funds being held by the court. As such, when you file your claim, you must also notify other applicable parties of your actions. This allows them to respond and take action if they want to claim that money to settle debts. Your lawyer can help you notify these parties at this juncture in the process.
- Attend a Hearing: In general, you will need to attend a hearing for a judge to review and verify your request before signing off on it. If there are multiple claims, they will also review all claims and issue a decision on who receives the funds and how they are to be disbursed.
- Finalize the Process: Once the judge has made their decision and you have been approved to claim your surplus funds, you may collect the funds being held by the Clark County Court System. Talk to your lawyer to ensure that there are no outstanding requirements that must be fulfilled.
It is also important to be aware that there are likely fees associated with various steps in this process. For example, Clark County’s most current fee schedule shows what individuals can expect to pay to file their surplus funds application. Other fees will depend on your specific situation and what actions your claim may require.
Legal Challenges that May Occur While Recovering Surplus Funds in Vancouver, WA
Foreclosures and surplus funds involve strict processes that can be very complex. These legal requirements may cause confusion and create unique challenges that may require adjustments and creative solutions. Some common challenges that can arise when trying to secure surplus funds may include:
- Claims by Creditors and Lienholders: Eligible creditors and lienholders may have valid claims to surplus funds for the purposes of settling outstanding debts. These parties are often prioritized in these claims, which could leave you with little to no remaining compensation. A lawyer can help you navigate these situations and ensure that lienholders and creditors do not take any more than strictly necessary.
- Ownership Disputes: Property ownership must be established to show that there is a legal claim to the funds. Ownership disputes can complicate matters when multiple parties attempt to claim the right to surplus money from the foreclosure sale. The court will review these claims and use its discretion to decide how to proceed. Having a lawyer on your side in these situations can make a big difference in the outcome.
- Failure to Follow the Proper Steps: Each step in the process of recovering surplus funds is critical. If you fail to fill out or submit an application properly, fail to notify other parties, or fail to provide the correct documentation, you could be at risk of not recovering funds. Working with a lawyer can reduce the risk of errors and ensure all steps are fulfilled correctly.
Surplus funds lawyers in Vancouver, WA are your advocates when you face legal challenges while trying to recover funds after a foreclosure. Our team is familiar with the process, its nuances, and its challenges, and is prepared for numerous situations. We customize our approach when resolving these matters and will optimize your claim for effective results.
Tax Implications for Surplus Funds
When you receive surplus funds, the amount could be nominal or a considerable lump sum. Depending on the circumstances and conditions of the foreclosure and the amount of excess proceeds, you could be required to pay taxes on the funds you receive. Every situation is different, so it is important to talk with both your lawyer and an accountant to gain clarity on what your obligations may be. Federal, state, and county taxes may have varying guidance.
Time Restrictions on Claiming Surplus Funds in Clark County
Time limits are applied to surplus funds and dictate how long you have to take action after a foreclosure. According to RCW 87.06.080, all eligible claims for surplus funds must be filed within three years of the sale of the property. Any monies that are not claimed by then will be added to the district’s expense fund. As such, it is in your best interest to recover surplus funds promptly and take steps to find out what you may be entitled to if you are not sure.
Symmes Law Group Helps You Secure Your Surplus Funds
A foreclosure and the stress of trying to recover surplus funds can take an immense emotional toll on you and your family. Legal representation provides you with a strong support system that understands how overwhelming the legal process can be when you are navigating significant life changes. It is a valuable resource that prepares you for your future while navigating your present.
Symmes Law Group provides trusted counsel and helps you recover any surplus funds you are entitled to receive after a foreclosure. We help you navigate the legal process so you do not hurt your ability to receive your funds. Contact us to schedule a free consultation today and discuss your options with a surplus funds lawyer serving Vancouver, WA.
