How to Recover Surplus Funds from Tax Foreclosure Sales in Maryland
If your property was sold at a tax sale in Maryland, you could be owed money. When a property sells for more than what was owed in back taxes, the extra money belongs to you. Maryland law (Section 14-818) requires that this surplus be paid to the person entitled to it. But many former property owners never find out these funds exist.
How Does This Happen?
When you fall behind on property taxes in Maryland, the county tax collector sells a tax lien certificate on your property. If you do not redeem (pay off the debt), the certificate holder can foreclose. If the property is sold and the sale price exceeds the taxes, interest, penalties, and costs, the leftover amount is your surplus.
Where Is the Money?
Your surplus funds could be in one of three places:
- With the local tax collector -- if the sale was recent
- Deposited with a court -- if there was a dispute about who gets the money
- With the Maryland Comptroller's unclaimed property office -- if more than three years have passed
How to File Your Claim
Step 1: Contact the local tax collector in the county where your property was sold. Ask if surplus funds exist and how to claim them.
Step 2: If the funds are with a court, contact the clerk of the court and file a motion requesting distribution.
Step 3: If more than three years have passed, search the Maryland Comptroller's unclaimed property database. Under Commercial Law Article Section 17-307, unclaimed funds are presumed abandoned after three years.
Step 4: Gather your documents -- ID, proof of property ownership, and any foreclosure notices.
Important Deadlines
- Three years: After three years, surplus funds are presumed abandoned and transferred to the state.
- 24-month blackout: Under Section 17-325, no one can legally charge you a finder's fee for 24 months after your funds are transferred to the state's abandoned property office. Any such agreement is unenforceable.
Watch Out for Predatory Fees
Maryland law specifically protects you from predatory recovery services. If someone contacts you offering to recover surplus funds during the 24-month blackout period after your funds were transferred to the state, they cannot legally charge you a fee.
Even outside this blackout period, you do not need to pay anyone. Free help is available.
Get Free Help from AuctionBlock.org
AuctionBlock.org is a mission-driven company that helps former property owners recover surplus funds at no cost -- ever. We can help you:
- Find out if surplus funds exist from your Maryland tax sale
- Navigate the claim process at the county, court, or state level
- Prepare and submit your documentation
- Protect you from predatory recovery firms
Contact AuctionBlock.org today and find out if Maryland owes you money. Our services are always free.
Why Maryland Is a Good State for Recovery
Maryland is considered a viable state for surplus fund recovery. The three-year window before abandonment is reasonable, the finder's fee protections are strong, and the statutory framework under Section 14-818 clearly establishes your right to surplus funds. The state actively protects property owners from predatory recovery firms through the 24-month blackout on finder's fees.
Key Takeaways for Maryland Property Owners
- Maryland does have tax sale surplus under Section 14-818
- You have three years before funds are presumed abandoned
- After transfer to the state, a 24-month finder's fee blackout protects you
- Contact the local tax collector first for the quickest resolution
- Check the Maryland Comptroller's unclaimed property database if more than three years have passed
- Free help is always available through AuctionBlock.org
Do not let your money sit unclaimed. Take action today.
Tyler v. Hennepin County: A Landmark Ruling
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 has prompted many states to reform their tax foreclosure laws. As of 2026, laws in this area are evolving rapidly.
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.