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Your Home Was Sold at Foreclosure. Could There Still Be Money Left?
Where to start with foreclosure surplus and tax-sale excess proceeds — and what to verify before accepting recovery help.
By Nate Marshall, Founder of RCIC
Losing a property can turn your life upside down. There are notices, deadlines, moving decisions, and financial questions that do not disappear when the sale is over.
One question deserves more attention:
Did the sale leave money behind that you may be entitled to claim?
Some foreclosure and tax sales generate funds beyond the debts and permitted costs. Those remaining funds may be available to eligible claimants.
That does not mean every sale produces money. It means the sale may deserve a closer look.
What are surplus funds?
You may hear several terms: surplus funds, excess proceeds, overbid, or overages.
These terms generally refer to money remaining after a property sale and the payments required under the applicable process.
For example, Sarasota County, Florida, explains that tax-deed sale proceeds first cover delinquent taxes and the costs of bringing the property to auction. Remaining surplus is deposited with the clerk and handled through a claim process. California Courts also recognizes that a foreclosure sale can produce surplus funds for a former homeowner. sarasotaclerk.com
