Disposition of funds on trustee sale

[Blackgoose]

Hi Everybody!

I received a letter in the mail today titled "Disposition of funds on trustee sale" in regards to the sale of my town home. Would we be entitled to $5,000 of the $7,256.84 that was made on the sale?

I'm wondering because I remember discussing with my attorney the $5k exemption on the home since it wasn't our primary residence.


Thank you!

[LadyInTheRed]

Since you posted under foreclosure, I assume the "trustee" is the trustee under a deed of trust, not a bankruptcy trustee. If so (and probably even if not), the mortgage and expenses of sale get paid first. You get whatever is left.

The homestead exemption does not protect you from voluntary liens. If there are any involuntary liens on your home (i.e., judgment liens or tax liens), you should ask your attorney whether the exemption applies.