very good announcement today, page-7

"If I default on my mortgage and the bank sells my house and it is worth more than the mortgage, they pay me the difference. Howc ome TFS can pocket the difference?"

If you have a mortgage then you have title to the property. The bank have offered you a mortgage, with security of the property a condition to ensure repayment - but once the debt is settled the rest of the sale is yours, as it's yours. (They hold on to title in that time for their security, but they don't own the property.)

Here, it never sounded like any title was transferred. A contract was entered into, but not completed, but the contract presumably entitled TFC to pursue settlement. The asset had never been transferred. Thus, when they renegotiated the settlement, the property remained TFC's so it was up to them to do what they wanted with the balance.