Legal Question in Real Estate Law in New York

Re: Overbid From a Forclosure Auction

Any overage, after fees and foreclosure expenses, goes to the mortgagor who "lost' the house. This will be taxable income of some sort.

Good Luck

RRG

Re: Overbid From a Forclosure Auction

By "overbid" I believe you mean surplus. A surplus is the amount of the bid in excess of the amount due plaintiff in accordance with the foreclosure judgment. The surplus is held by the Referee pending an application to confirm the sale, and for disposition of the surplus. The surplus will be awarded to the holders of liens on the property in order of priority, provided they submit a claim to the Court for their share of the surplus. There are many variable which can impact the rights and obligations of each of the respective parties in a foreclosure, so I would urge you to seek legal advice from an attorney if you have an interest in a property in foreclosure, or are interested in bidding.