FAQ
A foreclosure is an unfortunate and often life-altering event for those experiencing it.
For us to step in and offer some relief brings a glimmer of hope to an otherwise difficult situation.
Since 2012, the real estate market has remained relatively stable, but significant changes are on the horizon in the coming years. While we didn’t create the cycles of life, they are an inevitable part of the passage of time.
There will always be people who prefer the status quo, and we are building the next status quo by helping people capitalize on a tragic event.
Let's break down the concept of a mortgage overage in the context of a foreclosure:
When a homeowner fails to meet their mortgage obligations, the lender may initiate a legal process known as foreclosure. This process typically involves the property being sold at a public auction, overseen by a local government entity, to recover the outstanding loan balance.
The foreclosed property is auctioned, allowing potential buyers to place bids. In some instances, the winning bid at the auction exceeds the total amount owed on the mortgage, including the principal, interest, and foreclosure-related costs.
If the winning bid exceeds the total amount owed on the mortgage, including principal, interest, and fees, the surplus amount is referred to as an "overage." This overage represents the difference between the winning bid and the outstanding mortgage balance.
Legal and regulatory requirements governing the distribution of overages vary from state to state. Typically, the overage is first applied to cover the outstanding mortgage balance, foreclosure-related expenses, and associated costs. After these obligations are satisfied, any remaining funds may be disbursed to the homeowner (the former borrower) or other lien holders, depending on the specific legal provisions in place.
Homeowners and other parties with a legal interest in the property are often not notified about the existence of an overage. After a specified period, if no claim is made, the overage typically becomes part of the local county clerk's treasury.
Yes, the rights to a foreclosure overage claim can be sold. Handling such claims requires a high level of specialization and expertise. Here's how the process typically works:
The individual or entity with the rights to the foreclosure overage may choose to sell the rights to another party.
The sale of these rights involves a legal agreement between the current holder of the rights (the seller) and a Buyout Firm. The agreement outlines the terms of the sale, including the purchase price, any conditions, and the specific rights being transferred.
Once the agreement is executed, ownership of the foreclosure overage claim is transferred.
In exchange for the rights, the seller receives the agreed-upon payment from the buyout firm.
We then assume the rights and responsibilities of pursuing the foreclosure overage claim. This involves navigating the legal processes, interacting with relevant government authorities, and ensuring compliance with local laws.
Throughout history, humans have had an "instant formula" for making wealth that worked out for people and changed their fortunes and lives. From fur to gold to oil to lottery tickets to stocks and real estate - we've always had ways to get rich overnight. However, none of these come close to real estate after-foreclosure.
Yep, you heard that right!
As things stand, there's no way to become a multimillionaire that's as sure-shot and effective as closing after-foreclosure real estate deals. Of course, this isn't to say that anyone who ventures into the sector will become a millionaire. Not even close! But if you have the knowledge and know-how, the specialized team, sizable financial backing, keep your ear to the ground, and play your cards right - you definitely have a higher chance of becoming a millionaire than almost any other industry!
Keep in mind that after-foreclosure real estate is an obscured and hidden sector of the real estate industry, and it's not a get-rich-quick scheme. You can be the next multimillionaire by being in the right place at the right time.
Here's the thing: it's not uncommon for fads to catch fire in the world of finance. From inverse funds to gold mining stocks to crypto, we've all seen a fair share of fads that wasted people's money and caused them a massive amount of heartache.
So, does after-foreclosure real estate fall under this category?
While the market for foreclosure overages is not necessarily a passing trend, it is subject to broader economic and regulatory forces. Real estate-related markets can be cyclical, with periods of growth and contraction.
Regardless of how the markets are doing, there will always be foreclosures. Now, when times are bad, there is inflation, a looming depression, and rising interest rates. All of these factors create more foreclosures.
Let's look at the statistics:
We’ve only covered the tip of the iceberg here. The stats are insane and, more importantly, will only increase over the next decade. Name a financial "fad" that will be on a hockey stick graph growth for the coming decade. That's right, there aren’t many other ones!
In short, after-foreclosure real estate is backed by statistics. And if we go by current projections, things are only going to get better in the coming years.
