Foreclosure Surplus Funds

If a lender or HOA foreclosed and the auction price was higher than the debt, the difference is usually held by the court for the former owner.

How foreclosure surplus works

At a foreclosure sale, the proceeds pay the foreclosing lender's judgment and costs. Junior lienholders may then claim. What remains belongs to the former owner. The money is usually held by the clerk of court or trustee until someone files a claim.

Court involvement

In judicial-foreclosure states, a judge may need to approve the release of funds, and a hearing may be required. Some states also limit fees for surplus-recovery services. For example, Florida caps fees on mortgage-foreclosure surplus under Fla. Stat. §45.033. Some states restrict or prohibit paid surplus services altogether. We only offer services where they are allowed, and we tell you when an attorney is needed.

You can do this yourself, for free. Former owners and heirs may file a claim directly with the county (or court, for foreclosures) without hiring anyone and without paying a fee. We exist for people who would rather have a professional handle the research, paperwork, and follow-up.

How we help

We confirm the surplus with the clerk, explain who else may have a claim, and help assemble documents. Where court filings or hearings are required, we recommend a licensed attorney of your choice.

General information, not legal advice.

Ask if you may be owed