Can I get money back after a foreclosure?
Sometimes. If the foreclosure sale brought in more than the sale costs and the debts that must be paid first, the remaining money is surplus funds. The former owner, or junior lienholders or heirs, can claim it.
What happens to my equity after foreclosure?
Your equity is not transferred to you directly. The home is sold, and only what remains after costs and debts becomes surplus. Because foreclosure sales often bring less than market value, the surplus is usually smaller than the equity you had.
Who gets the extra money when a foreclosed house sells for more than the mortgage?
Generally, lienholders whose liens were wiped out by the sale are paid in order of priority, and the former owner of record gets what remains. Each state sets the exact rules.
Where is foreclosure surplus money held?
Usually with the clerk of the court in a judicial foreclosure, or with the trustee who ran the sale in a non-judicial foreclosure. Trustees often deposit it with the court when ownership is unclear.
How long do I have to claim surplus funds?
It depends on the state. Some deadlines are short. In some states, money that goes unclaimed is eventually sent to the state's unclaimed property program.
Do I need a lawyer to claim surplus funds?
Not always. Many straightforward claims can be filed by the former owner. A lawyer is often helpful when there are competing claims, liens, multiple heirs or a court hearing.
Can I claim surplus funds for a parent who passed away?
Often, yes, through their estate. You will usually need a death certificate and documents showing your authority to act for the estate. See our guide for heirs.
Is foreclosure surplus the same as a tax sale overage?
No. Surplus from a mortgage foreclosure and overages from a property tax sale come from different sales, are held by different offices and follow different rules.
Are surplus funds taxable?
They can have tax consequences depending on your situation. Ask a tax professional.
Why would I use a recovery company if I can claim it myself?
Some people prefer to have the process handled because it is unfamiliar, involves other claimants, or is in another county or state. Others prefer to do it themselves. Both are fine choices.
How much do recovery companies charge?
It varies, and some states set limits. Florida, for example, caps an assignee's compensation at 12 percent of the surplus under a qualifying transfer. Always get the fee in writing before you sign.
Does Surplus Funds Consulting work in my state?
We offer recovery services only where we have confirmed we can do so lawfully. Contact us and we will tell you whether we can help with your property.
Do you investigate every inquiry for free?
No. We review each inquiry and tell you whether it is a case we can take on. Detailed case work begins after a written agreement is signed.