Roanoke, VA asked in Estate Planning, Real Estate Law and Foreclosure for Virginia

Q: What legal actions can my aunt, brother, sister and myself take since we were the heirs to my grandfathers estate in Tx.

We were all served paperwork stating that the property would be auctioned off to pay what's owed and we would receive the difference. A couple weeks after the auction date I contacted the law office in charge of the sale to see how much the property sold for. I was told it didnt go to auction and the bank seized it for what was owed. The property was valued at 156k and only $49k was owed. Even with it being a forclosure sale id like to think that there would be a surplus. It said in the summons that we didn't have to do or file anything to receive our portion of the sale.

1 Lawyer Answer
Richard Sternberg
Richard Sternberg
  • Estate Planning Lawyer
  • Potomac, MD
  • Licensed in Virginia

A: Wow. You probably did a very stupid thing by not stepping in. In a foreclosure, the secured and foreclosing party will bid as much but not more than what is called the upset price. That is the amount they are owed after fees and expenses. In a very hot market, especially with all the many varieties of Trump University selling the notion that foreclosure auctions are profitable, there will sometimes be a surplus, but you need someone watching there to find out. Otherwise, I wouldn't bet on a deposit from the sale in your accounts. If you want to know with greater certainty, retain Texas counsel, but that should have happened when there was over $100,000 to spread around.

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