California foreclosure surplus funds are the excess proceeds from a foreclosure sale,
where the sale price exceeds the mortgage debt and costs, and the former homeowner has a right to claim them
by filing a timely claim (typically within 30 days) with the trustee or court after junior liens are satisfied.
The process involves contacting the trustee,
submitting a sworn claim with proof of ownership, and being aware of potential scams and tax implications.
What Are Foreclosure Surplus Funds?
These are the funds remaining after a property is sold at a foreclosure auction,
and the sale price covers the primary mortgage, trustee fees, and other foreclosure costs, leaving money behind.
Who Gets Paid First? (Lien Priority)
- Secured Liens: Junior lienholders (like second mortgages or property tax liens) get paid first, in order of their lien’s priority.
- Former Homeowner: After all valid liens are satisfied, the original homeowner is next in line for any remaining funds.