Tax Foreclosure Surplus Funds in Union County, Tennessee: What Homeowners Need to Know
After a tax sale in Tennessee, many former homeowners walk away without knowing they left money on the table.
Union County (a community of roughly 19,972 residents, county seat: Maynardville) is no exception. When property taxes go unpaid and a home is sold at a tax deed sale, the auction price often exceeds the debt owed. That extra money -- called surplus funds or "overages" -- may legally belong to you, the former owner.
How Union County Tax Sales Work
In Union County, the County Trustee handles tax collection. When your property sells at a tax deed sale for more than the delinquent taxes, penalties, interest, and costs, the excess is held by the County Clerk. Under Tennessee Code, those surplus funds belong to eligible former owners -- not the government.
In 2023, the U.S. Supreme Court confirmed this in Tyler v. Hennepin County, ruling unanimously that governments cannot keep surplus proceeds beyond what is owed. Tennessee has been actively reforming its surplus fund laws in the wake of Tyler v. Hennepin County (2023).
Deadlines You Cannot Afford to Miss
- Surplus funds are presumed abandoned after 1 year under Section 66-29-110.
- After presumed abandonment, funds are transferred to the Tennessee Treasury Department as unclaimed property.
- Once with the state, there is no final expiration -- funds remain claimable indefinitely through the state's unclaimed property system.
In Tennessee, you have 1 year at the county level before funds transfer to the state as unclaimed property. After that, recovery becomes far more difficult or impossible.
Steps to Claim Your Money
- Contact the county office listed on your tax sale notice to ask about surplus funds.
- Gather proof of ownership (deed, title records), government-issued ID, and any correspondence about the sale.
- File a claim with the county. If the funds have already transferred, search the Tennessee Treasury Department's unclaimed property portal.
- If needed, consult with a licensed attorney, especially for claims involving significant amounts.
Be cautious of scams -- never pay large upfront fees for recovery help. Tennessee has some of the strictest finder's fee regulations in the country. A Private Investigator license is required for anyone acting as a 'locator' to help recover surplus funds.
Free Help from AuctionBlock.org
AuctionBlock.org is a mission-driven company that helps former homeowners recover surplus funds for a flat $4,999 fee upon successful recovery. We can search for funds from your Union County tax sale and guide you through every step.
Contact AuctionBlock.org to search for unclaimed surplus funds from your property's tax sale -- for a flat $4,999 fee, paid only upon successful recovery.
AuctionBlock.org is a mission-driven company providing surplus fund recovery assistance. Nothing in this article should be construed as legal advice. Tax laws vary and change -- verify all information with a qualified attorney. Current as of April 2026.