When a property is sold at a foreclosure or tax sale and the winning bid exceeds the loan balance plus fees, the excess is called surplus funds (or overage). Under state law, those funds belong to the former owner, not the county, not the lender, and not the courts. But nobody mails you a check.
Who Actually Gets Surplus Funds
The priority typically runs:
- Junior lienholders (second mortgages, judgment creditors, HOA liens)
- The former owner of record at the time of the sale
If the junior lien pile does not consume the whole surplus, the remaining balance is owed to the former owner. In many counties, millions of dollars sit unclaimed for years.
How to Find Out If You Are Owed Money
- Contact the trustee, sheriff, or court clerk who conducted the sale
- Request the "final report of sale" or "post sale accounting", it lists surplus balance
- Check your state's unclaimed funds database (usually a searchable state treasury site)
If a surplus exists, the county typically holds it for a defined period (often 1 to 3 years) before it escheats to the state.
The Claim Process
Filing a claim usually requires:
- Proof of identity (photo ID, sometimes notarized)
- Proof of ownership at the time of sale (deed, foreclosure paperwork)
- Signed claim form specific to that court or agency
- Sometimes a hearing, especially if multiple parties claim the funds
Timelines vary by jurisdiction from a few weeks to 6 to 12 months.
Watch Out For Surplus Fund "Recovery" Scams
Companies routinely contact former homeowners offering to "help" recover surplus funds, for 30 to 50 percent of the balance. Some are legitimate assisted recovery services. Many are scams that charge upfront fees for public information you could get free.
Before signing anything:
- Verify the surplus actually exists (call the court directly)
- Ask exactly what services they provide beyond what you could do yourself
- Never pay an upfront fee before recovery
- Compare their contingency percentage against your own effort
We Do Not Take Fees on Surplus Recovery
Liberty Property Solutions runs a free surplus refund research service for former owners. If a surplus is out there, we tell you where to find it and how to claim it directly, no fee, no percentage, no strings. It is our way of giving back to a community we have worked with since 2018.
Ready to check?
Send us the property address and the approximate date of the foreclosure or tax sale. We will research it for free and let you know within a few business days.