How to Recover Surplus Funds from Tax Foreclosure Sales in Delaware

Here is something most people do not know: if your Delaware property was sold at a tax sale and it sold for more than you owed in back taxes, the extra money is supposed to go to you. In fact, Delaware law says it should be paid to you right away.

What the Law Says

Under Title 9, Chapter 87, Section 8779, after the taxes and sale costs are paid from the sale price, the remaining amount "shall be paid at once to the owner of the land." It does not get much clearer than that.

But what if the owner cannot be found? The law says the money must be deposited in a bank in the county, to the credit of the owner or in a way that allows the funds to be identified.

The Court-Supervised Process

In some Delaware counties, particularly under Section 8757 (New Castle County), the tax sale process involves the Superior Court. The court confirms the sale, and the Sheriff distributes the proceeds:

1. First, the tax judgment plus interest and costs
2. Then, to lienholders (mortgages, judgments, etc.) in order of priority
3. Finally, whatever is left goes to you, the former owner

If the Sheriff pays the balance into the Superior Court instead of directly to you, you will need to file with the court to get your money.

Steps to Get Your Surplus Funds

1. Contact the county Sheriff's office and ask about surplus funds from your property's tax sale.
2. Check with the Superior Court — the Clerk can tell you if funds were deposited there.
3. Bring your documentation: ID, proof of ownership (deed, title), and any notices about the sale.
4. If funds are in a bank: Ask the Sheriff which bank holds the deposit and work to access it.
5. If funds are in court: You may need an attorney to file a motion for release of the funds.

Can You Still Save Your Property?

Here is an important option: under Delaware law, the tax sale cannot be confirmed if you pay the full judgment amount plus interest and costs. If the sale has not yet been confirmed, you might be able to stop it entirely.

Act Quickly

While Delaware's specific escheatment timelines are not detailed in the tax sale statutes, general unclaimed property laws will eventually apply. The sooner you act, the easier the recovery process will be.

Free Help from AuctionBlock.org

AuctionBlock.org is a mission-driven company that helps Delaware homeowners recover surplus funds for a flat $4,999 fee upon successful recovery. We can:

• Search for surplus funds from your property's sale
• Guide you through the Sheriff's office or court process
• Help you prepare documentation
• Connect you with a Delaware attorney if needed

The law says this money is yours. Let us help you get it. Contact AuctionBlock.org today — our services are always free.

Visit AuctionBlock.org to learn more.

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.