surplus funds recovery In California,
if your foreclosed home sells for more than the total debt owed,
you are entitled to the surplus funds (excess proceeds).
You must act quickly—typically within 30 days of receiving notice
to claim these funds from the trustee, or they may be transferred to the state as unclaimed property.
Steps to Recover Surplus Funds in California
- Verify the Surplus: Contact the trustee listed on the “Notice of Trustee Sale” to confirm if there are excess proceeds.
- Submit a Claim: File a written request with the trustee or a motion with the court,
- providing documentation of your ownership (e.g., deed, identification).
- Address Liens:
- Be aware that junior lienholders (second mortgages, tax liens, credit card liens) may have a higher claim to the funds than you.
- Avoid Scams: Be cautious of third-party recovery firms that charge high fees; you can file these claims on your own.
Where to Check for Unclaimed Funds
If the trustee cannot locate you, they send the funds to the state.
- California State Controller’s Office: Search the official website: claimit.ca.gov.
- County Tax Collector: Check the specific county records where the property was located.