afterthesale.org

Surplus Funds

How Our Company Helps You Claim Excess Funds After the Sale

After the property is sold, any extra money (called excess proceeds) is held by the court or trustee. This money is not paid out automatically and must be claimed.

Our company helps you by:

Our goal is to make the process simple, accurate, and stress-free, so you can receive the money you are entitled to as quickly as possible.

Foreclosure Surplus Claims Assistance

foreclosure surplus claims assistance

foreclosure surplus claims assistance
surplus claims assistance

Foreclosure surplus funds, which arise when a property sells for more than the debt owed,

belong to the former homeowner but must be actively claimed. The process involves identifying funds,

filing a petition in court, and often providing proof of ownership, generally taking 90–120 days to recover. Specialized attorneys or, in some cases, public records offices can assist in this process. 

Steps for Claiming Surplus Funds

  • Identify Surplus Funds: After the foreclosure auction,
  • check the “registry of court” with the local court clerk for excess funds,
  • often listed by the case docket number, property address, or owner’s name.
  • File a Petition: 
  • File a “Petition to Turn Over Surplus Funds” (or similar motion) with the court to claim the money.
  • Verify Ownership:
  •  Provide proof of ownership (such as a title) and identify any other lienholders (like second mortgage holders) who may have a right to the funds.
  • Attend Hearings: The court may hold hearings to determine the rightful recipient of the funds.
  • Timing: Act quickly, as some jurisdictions have specific deadlines for claiming excess proceeds, often ranging from one to three years.

Assistance and Resources

  • Attorneys: Real estate attorneys can handle the legal, complex process of filing motions and representing claimants.
  • Legal Aid: Organizations like Michigan Legal Help provide resources for navigating the process for tax foreclosures.
  • Court Clerk/Trustee: The trustee who managed the sale or the county clerk’s office can provide information on deposited funds.
  • State Resources: In some areas, such as Arkansas, excess proceeds can be searched online through official state websites, such as the Arkansas.gov Excess Proceeds search. 

Important Considerations

  • Taxes: Surplus funds may be considered taxable income.
  • Timeframe: The recovery process typically takes 90 to 120 days, but more complex cases may take longer.

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