How to Recover Surplus Funds from Foreclosure Sales in Wisconsin
If you lost a property in Wisconsin, you might be wondering whether there is unclaimed money waiting for you. The answer depends on how you lost the property.
The Important Distinction
Wisconsin does NOT have tax sale surplus. Unlike most states, Wisconsin does not sell tax-delinquent properties at public auction. Instead, the county takes ownership through a tax deed process. Because there is no competitive bidding, no surplus is generated.
If your property was taken for unpaid taxes, there is unfortunately no surplus to claim.
Mortgage Foreclosure Surplus IS Available
If your property was lost through a mortgage foreclosure (your bank or lender foreclosed), that is a different story. Under Section 846.162, when a mortgage foreclosure sale generates surplus, the extra money is paid into court by the sheriff or referee.
Who Can Claim Mortgage Foreclosure Surplus
- Any party to the foreclosure action
- Any person who had a lien on the property at the time of sale (even if they were not part of the lawsuit)
How to Claim
- Contact the Clerk of Court in the county where the foreclosure happened.
- File a notice of claim stating you are entitled to surplus and describing your interest.
- Attend a court hearing: The court will schedule a hearing (with at least 8 days' notice) to determine who gets the surplus.
- Receive payment once the court issues its order.
The One-Year Deadline
Under Section 177.13, funds held by a court are presumed abandoned after just one year. That means your mortgage foreclosure surplus could be transferred to the state's unclaimed property division relatively quickly. Act fast.
Search Unclaimed Property
If it has been more than a year, search Wisconsin's unclaimed property database. Your funds may already be there.
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
AuctionBlock.org is a mission-driven company that helps former property owners at no cost. We will honestly tell you what funds are available, help you file your claim, and guide you through the court process.
Do not leave money sitting in a court registry. Contact AuctionBlock.org today for a free assessment of your situation.
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.