### Requesting a Breakdown of Expenses After Foreclosure: How to Protect Your Overages

If you or someone you know has gone through a foreclosure, understanding what happens to the sale proceeds is critical. In many cases, there may be excess funds, or "overages," left after the lender has recouped what they’re owed. However, these funds can be quickly diminished by various expenses the lender is legally allowed to deduct. That’s why requesting a detailed breakdown of these costs is essential to protect any potential funds owed to you.

#### What Are Foreclosure Overages?

When a home is sold at a foreclosure auction, it’s common for the sale price to exceed the remaining balance on the mortgage. This excess amount is known as a foreclosure overage or surplus funds. By law, these overages belong to the homeowner, but only after all debts and expenses related to the foreclosure have been settled. However, lenders are allowed to deduct certain costs from the sale proceeds before overages are distributed.

#### Why You Need a Breakdown

To ensure that the correct amount is deducted—and no improper or inflated fees are included—it’s vital to request a full breakdown of the expenses applied to the loan. Without this step, you risk losing thousands of dollars in recoverable overages that rightfully belong to you.

Here’s what you should look for in the breakdown:

1. Outstanding Loan Balance: This is the remaining principal balance of the loan at the time of foreclosure. The lender will recoup this amount first from the sale proceeds.

2. Accrued Interest: Any unpaid interest that accumulated on the loan until the foreclosure date will also be deducted.

3. Late Fees and Penalties: Lenders often charge late fees for missed payments, and these will be subtracted from the sale proceeds as well.

4. Attorney and Legal Fees: The legal costs associated with processing the foreclosure can be substantial. These include attorney fees, court filing fees, and other related legal expenses.

5. Foreclosure Sale Costs: Expenses related to conducting the foreclosure sale, such as auctioneer fees, advertising, and administrative costs, can also be recovered by the lender.

6. Property Maintenance and Carrying Costs: During the foreclosure process, the lender may incur expenses to maintain the property, such as securing the home, landscaping, or conducting repairs. These carrying costs can add up and will be deducted from the sale proceeds.

7. Property Taxes: If the lender paid overdue property taxes or continued to pay taxes while the foreclosure was pending, these amounts will be included in the breakdown.

8. Insurance Costs: If the lender advanced payments for hazard or homeowner’s insurance during the foreclosure period, those costs will also be deducted.

9. Escrow Advances: If you had an escrow account to cover taxes and insurance, any shortages or amounts the lender covered will be added to the total.

#### How to Use the Breakdown

Once you receive the breakdown, it’s essential to review it carefully. This detailed accounting allows you to verify that all charges are legitimate and no improper fees have been added. It also ensures that you understand exactly where your money is going.

If any discrepancies or unexplained fees are found, you have the right to challenge the lender’s accounting. Doing so could increase the amount of overages available for you to recover.

#### Protect Your Interests

At National Overages Finders Alliance (NOFA), we specialize in helping homeowners recover the funds owed to them after a foreclosure. We know that lenders sometimes overestimate costs or apply charges that shouldn’t be included, which is why we always recommend requesting a detailed breakdown of all expenses.

If you believe you have overages or want assistance with recovering funds after foreclosure, contact us for a consultation. We'll review your situation, request the necessary breakdown, and help ensure that no money is left on the table.