How to Recover Surplus Funds from Tax Foreclosure Sales in Tennessee
If you lost a property to a tax foreclosure sale in Tennessee, there may be money waiting for you -- and in Tennessee, it never expires.
What Are Surplus Funds?
When a property is sold at a tax foreclosure auction for more than what was owed in taxes, penalties, and costs, the leftover money is called "surplus funds." That money belongs to the former property owner, not the government.
In Tennessee, after the sale proceeds cover attorney fees (up to 10%), court costs, and the taxes owed to the state, county, and municipality, any remaining balance is surplus.
Your Money Never Expires
Here is the good news: under Section 66-29-110, while surplus funds are considered "presumed abandoned" after one year, the former owner can claim them at any time in the future. There is no ultimate deadline. Your money does not disappear.
Once funds are presumed abandoned, they are transferred to the Tennessee Treasury and become searchable online.
How to Claim Your Surplus
- Search online: Visit the Tennessee Treasury Department's unclaimed property search tool. Your surplus funds may already be listed.
- Contact the county: Call the County Tax Collector or Treasurer where your property was located and ask about surplus from your sale.
- Gather documents: You will need a government ID, proof of ownership (deed, tax records), and any sale-related correspondence.
- File your claim: Submit a written claim to the court or the state unclaimed property division.
Watch Out for Finder's Fees
Tennessee has strict rules about people who help others recover unclaimed funds. Under Tennessee law:
- "Locators" must be licensed Private Investigators
- Fees are capped at 10% of the claim or $50, whichever is higher
If someone contacts you offering to recover your funds, make sure they are properly licensed. Better yet, get free help from a company instead.
Who to Contact
- Tax sale surplus: County Tax Collector or Treasurer
- Mortgage foreclosure surplus: County Clerk or Sheriff
- State unclaimed property: Tennessee Treasury Department
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 prompted many states to reform their tax foreclosure laws. As of 2026, laws in this area are evolving rapidly, so always verify current statutes in your state.
Get Free Help Today
AuctionBlock.org is a mission-driven company that helps former property owners recover surplus funds at zero cost. We do not charge a penny -- not 10%, not $50, nothing. We will research your case, help you file your claim, and make sure you get every dollar you are owed.
Do not let money that belongs to you sit unclaimed. Contact AuctionBlock.org today for a free consultation and let us help you recover what is rightfully yours.
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.