What Are Surplus Funds?
Surplus funds are excess proceeds from a forced property sale — and they belong to you. Here's everything you need to know.
The Simple Truth About Surplus Funds
When a property is sold at foreclosure or a tax deed auction, the proceeds from the sale are first used to pay off all debts — including the mortgage balance, outstanding taxes, attorney fees, and other liens.
If the sale price is higher than the total amount owed, the money that remains is called surplus funds — also known as excess proceeds or overbid funds.
Under the law in most U.S. states, this money belongs to the former property owner or their heirs. However, because most people are unaware of this right — and because the claim process can be legally complex — billions of dollars in surplus funds go unclaimed every year.
“Just because you lost your property doesn't mean you lost your right to the proceeds. That money is legally yours — and we're here to help you get it.”
Different Sources of Surplus Funds
Mortgage Foreclosure Surplus
When a lender forecloses on a home and the auction price exceeds the mortgage balance plus fees, the remaining amount is surplus. Former homeowners are often legally entitled to this money.
Tax Deed Sale Surplus
When a government agency sells a property to recover unpaid taxes and the sale price exceeds the tax debt, surplus funds remain. The prior owner or heirs can file a claim to recover these proceeds.
HOA & Lien Sale Surplus
Properties sold to satisfy HOA dues or other liens may also generate surplus proceeds. Depending on the jurisdiction, former owners may be entitled to these excess funds.
Who Is Eligible to Claim?
Eligibility depends on your relationship to the former property and the laws of the state where the sale occurred.
Former Property Owners
If you owned a property that was sold at foreclosure or tax deed auction, you may be entitled to any surplus proceeds from that sale.
Heirs & Estate Representatives
If the former owner is deceased, their heirs or estate representatives may be able to claim surplus funds through proper legal channels.
Junior Lien Holders
In some cases, holders of secondary liens (such as second mortgages or judgment creditors) may also have a claim to surplus proceeds.
Claims Within the Statute of Limitations
You must file your claim before the state's deadline — typically between 1 and 5 years after the sale. Act promptly to protect your rights.
Find Out If You Have a Claim
Our team will research your situation at no charge and tell you exactly what you may be entitled to.
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