How to Recover Surplus Funds from Tax Foreclosure Sales in Washington
If your property was sold at a tax foreclosure auction in Washington State for more than what you owed, the county may be holding your money -- and here is the good news: it does not expire.
Your Right to Surplus Funds
Under RCW 84.64.080, when a property sells for more than the minimum bid at a tax foreclosure sale, the excess (minus any water-sewer district liens) is refunded to the record owner upon application. That means you need to ask for it -- but you have the right to it.
Post-Tyler Reforms
Following the Tyler v. Hennepin County (2023) Supreme Court ruling, Washington State has been evaluating potential reforms to its tax foreclosure surplus framework. While Washington already had relatively strong protections, additional legislative changes may have been enacted. Verify current statutes with a licensed attorney.
Your Funds Never Expire
Washington has a unique provision that protects property owners: tax foreclosure surplus funds are specifically exempt from the state's unclaimed property rules. Unlike in most states, your surplus is not transferred to the state after a few years. It stays with the county, waiting for you to claim it.
How to Claim Your Surplus
- Contact the County Treasurer in the county where your property was sold.
- File a written application for the surplus refund.
- Provide documentation: government ID, proof you were the record owner, and the property parcel number.
- Receive your refund after the county verifies your application.
Note: any recorded water-sewer district liens will be paid from the surplus first.
Why Free Help Matters in Washington
Washington caps finder's fees at just 5%, the lowest in the nation. This means most for-profit surplus recovery companies do not operate in the state -- it is simply not profitable for them.
That is where AuctionBlock.org comes in. As a mission-driven company, we help former property owners recover surplus funds at no cost at all. We are not limited by the 5% cap because we do not charge anything.
Mortgage Foreclosure Surplus
If you lost property through a mortgage foreclosure, surplus may be held by the clerk of the superior court under RCW 61.24.080. Contact the County Treasurer for more information.
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.
Do Not Leave Money on the Table
Your surplus funds are sitting with the county, and they are not going anywhere. But the sooner you claim them, the simpler the process will be.
Contact AuctionBlock.org today for a free consultation. We will research your case, help you file your claim, and make sure you get every dollar you are owed -- completely free.
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.