We surrendered our house in Ch.7 BK. 1st Mortgage company is foreclosing and will be selling it Wednesday morning. We are planning to go and see what happens, and hopefully find out how much it sells for. Question - if the house sells for MORE than the amount of the 1st mortgage, what happens to the rest of the money? Does it go to us? Does it go to the bankruptcy trustee? If it comes to us, do we have to turn it over to the trustee? We'd really appreciate any comments - thanks!
Depending on your state's Homestead Exemption, some or all of the exces should go to you. Here in AZ the homestead exemption is $100,000 so if your house sold for $150,000 above what you owe on it, the first $100,000 in excess goes to you, and the rest to the Trustee.
