How to Recover Surplus Funds from Tax Foreclosure Sales in Pennsylvania
If your property was sold at a tax sale in Pennsylvania and the sale price was more than what you owed in back taxes, you may be entitled to the difference. That leftover amount is called surplus funds, and in Pennsylvania, the law provides a specific process for getting it back.
How Pennsylvania's System Works
Pennsylvania has a unique approach to tax sale surplus. Under 72 P.S. Section 5971m, when a property sells at a tax sale for more than the delinquent taxes, interest, and costs, the buyer must post a bond for the surplus amount. This bond is filed with the court and creates a lien on the property itself.
As the former owner (or your heirs or assigns), you have the right to cause judgment to be entered on that bond and collect the surplus money.
The Unusual Timeline
Here is what makes Pennsylvania different from most states: you cannot claim your surplus until at least two years after the court confirms the tax sale. But you must claim it within five years. This creates a window between years two and five when you can act.
If the buyer does not pay within 30 days after judgment is entered, you can actually have the property sold again to satisfy what you are owed.
The 15% Fee Cap
Pennsylvania limits finder's fees to 15% of the surplus recovered. If anyone offers to help you recover your money, they cannot charge more than that. And remember — you can always file the claim yourself.
Steps to Recover Your Surplus
- Find out when the sale was confirmed by contacting the County Treasurer or the prothonotary's office.
- Wait for the two-year mark from the confirmation date.
- Cause judgment to be entered on the surplus bond. This is a legal process — consider working with an attorney.
- Collect your surplus plus interest. If the buyer does not pay within 30 days, you can enforce through execution.
- Do not wait past five years — after that, your right may expire.
Who to Contact
- County Treasurer for tax sale surplus information
- Prothonotary's office to locate the surplus bond
- Sheriff/Clerk for mortgage foreclosure surplus
The Tyler v. Hennepin County Decision
In 2023, the U.S. Supreme Court issued a unanimous ruling 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 significantly strengthened property owners' rights to surplus funds across the country. As of 2026, laws in this area are evolving rapidly as states update their statutes to comply with this ruling. It is more important than ever to understand your rights and act promptly.
Get Free Help
AuctionBlock.org is a mission-driven company that helps former property owners recover surplus funds for a flat $4,999 fee upon successful recovery. Pennsylvania's bond and judgment process is more complex than most states, but we can guide you through it and connect you with qualified attorneys if needed.
Contact AuctionBlock.org today for free assistance. You have a legal right to your surplus funds — do not let the five-year deadline pass you by.
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.