How to Recover Surplus Funds from Tax Foreclosure Sales in Connecticut
Did your property in Connecticut get sold at a tax sale? There may be money sitting in a court account with your name on it.
When a property sells at a tax auction for more than the back taxes owed, the extra money belongs to the former owner (and potentially other parties like mortgage holders). In Connecticut, this surplus goes through a specific process — and understanding that process is the key to getting your money back.
How Connecticut's System Works
Under Section 12-157, Connecticut handles surplus funds in stages:
- First 6 months: The excess is held in escrow by the township tax collector while you have the chance to redeem (buy back) your property.
- After 6 months (if you do not redeem): The surplus is paid to the local Superior Court.
- After 3 years: Unclaimed funds transfer to the Connecticut State Treasurer — and recovery becomes much harder.
Your best window to recover is while the money is with the Superior Court — roughly from 6 months to 3 years after the tax sale.
Important: Connecticut Tax Sales Are Township-Level
Unlike most states, Connecticut conducts tax sales at the township level, not the county level. Contact the town tax collector — not the county — for information.
What Notices You Should Have Received
The tax collector is required to send you certified mail notice telling you:
- Which court holds your surplus funds
- Your right to file an application to claim the money
- The amount being held
If you moved and did not get this notice, the money is still there. You just need to find it.
Steps to Recover Your Money
- Contact the township tax collector and ask about surplus funds from your property's sale.
- Write to the Superior Court in the judicial district where the property is located to get a list of held funds.
- Hire an attorney — the court process typically requires one. Budget $1,500 to $2,000 for legal fees.
- File an application with the court for release of the surplus.
- Provide documentation: ID, proof of ownership, and any tax sale notices you received.
- Receive your funds once the court approves your application.
The Three-Year Deadline
This is critical: after three years from the tax sale, unclaimed surplus funds transfer to the State Treasurer. Once that happens, the process becomes significantly more complex. File while the money is still with the Superior Court.
No Fee Caps in Connecticut
Connecticut does not have specific statutory caps on finder's fees for surplus funds. This means you should carefully evaluate any fee agreement before signing. Remember that you always have the right to file on your own.
Free Help from AuctionBlock.org
AuctionBlock.org is a mission-driven company that helps you recover surplus funds for a flat $4,999 fee upon successful recovery. We can:
- Help you find out if surplus funds exist
- Explain Connecticut's unique multi-stage process
- Connect you with affordable attorneys for the court filing
- Help you gather the right documentation
Do not let the court process intimidate you, and do not let the three-year window close on your money. Contact AuctionBlock.org today — our help is always free.
Visit AuctionBlock.org to get started.
Tyler v. Hennepin County: A Landmark for Property Owners
In 2023, the U.S. Supreme Court ruled unanimously in Tyler v. Hennepin County that governments cannot keep surplus proceeds from tax sales beyond what is owed, finding this violates the Takings Clause of the Fifth Amendment. This landmark decision has strengthened property owners' rights to surplus funds nationwide, and as of 2026, laws in this area are evolving rapidly. Many states have enacted or are considering reforms in response to this ruling. We strongly recommend verifying current statutes in your state, as the legal landscape may have changed since this guide was written.
AuctionBlock.org is a mission-driven company providing surplus fund recovery assistance. This guide is for educational purposes only and does not constitute legal advice. Laws change frequently — always verify current statutes with a licensed attorney in your state. Last updated: April 2026.