Monday, 8 September 2014

I have a friend who lost her house due to forfeiture stemming from her husband being involved in a drug related crime. She still owes quite ...

Question

I have a friend who lost her house due to forfeiture stemming from her husband being involved in a drug related crime. She still owes quite a bit of money on the property, so if the house is sold after forfeiture, will the proceeds go toward the remaining balance of her loan?



Answer

Any balance would belong to her and her husband.



Answer

Yes. Once a foreclosed property is sold, the loan is repaid first. If there is anything left over (and today there often is NOT) then it should go to the owners of record, subject to any other liens that take priority, such as federal taxes, etc.



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