Foreclosure Surplus Funds: Your Right to Recover
If your home was sold at a tax or mortgage foreclosure auction for more than what was owed, you may be entitled to the excess funds. Learn how to claim what's yours.
What Are Surplus Funds?
When a property is sold at a foreclosure auction — whether for unpaid taxes or a defaulted mortgage — it sometimes sells for more than what was owed. The difference — called “surplus,” “excess proceeds,” or “overages” — belongs to the former property owner (after any junior liens are satisfied).
Tax Surplus
When your property sells at a tax sale for more than the taxes, penalties, and fees owed, the county holds the excess. You have a right to claim it.
Mortgage Surplus
When your home sells at a mortgage foreclosure auction for more than the loan balance, fees, and junior liens, the court or trustee holds the excess for you.
Often Unclaimed
Counties and courts hold these funds but often DON'T proactively notify owners. If unclaimed, funds eventually "escheat" (are permanently kept by the government).
Your Money
Amounts can range from a few hundred dollars to tens of thousands or more. This is YOUR money — you have a legal right to it.
How to Check If You Have Surplus Funds
TAXTax Foreclosure Surplus
Identify which county held the tax sale (where your property was located).
Contact the County Treasurer, Tax Collector, or Clerk (the office varies by state).
Request the "excess funds list" or "surplus proceeds list" from tax foreclosure sales.
Check if your name or property address appears on the list.
Ask for the claim forms and filing instructions.
Sample Email for Tax Surplus
“Hello, I am writing to request information about excess funds from tax foreclosure sales. I believe I may be entitled to surplus proceeds from a property previously located at [address]. The tax sale took place on or around [approximate date]. Could you please provide me with the claim forms and instructions for filing a claim? Thank you.”
MORTGAGEMortgage Foreclosure Surplus
Determine whether your state uses judicial foreclosure (court-supervised) or non-judicial foreclosure (trustee sale).
For judicial states: contact the Court Clerk in the county where the foreclosure was filed. For non-judicial states: contact the Trustee who conducted the sale.
Request information about any surplus or excess proceeds from the sale of your property.
Verify whether any junior lienholders have already filed claims against the surplus.
Obtain and complete the required claim forms. In judicial states, you may need to file a motion with the court.
Sample Email for Mortgage Surplus
“Hello, I am writing to inquire about excess proceeds from a mortgage foreclosure sale. My property, previously located at [address], was sold at a foreclosure auction on or around [approximate date]. The case number is [case number, if known]. I believe there may be surplus funds from the sale. Could you please provide information on the claim process and any required forms? Thank you.”
State-by-State Guide
Surplus fund rules vary by state. Use the table below to find your state's deadline, contact office for each type of foreclosure, and whether the claim requires a court filing.
| State | Claim Deadline | Tax Surplus Contact | Mortgage Surplus Contact | Court Filing? | Notes |
|---|---|---|---|---|---|
| Alaska | 6 months from sale | City/Borough Tax Collector | Court Clerk / Trustee | No | — |
| Connecticut | 3 years at court, then moves to State Treasurer | Township Tax Collector, then Superior Court Clerk | Superior Court Clerk | No | 6-month redemption period first |
| Delaware | No time limit | Court system | Court system | Yes | Funds never escheat |
| Georgia | 5 years (60 months) | County Tax Commissioner | Superior Court Clerk | Varies | 1-year redemption period first |
| Hawaii | 12 months at island level | Island Tax Collector/Treasurer | Court Clerk / Trustee | No | — |
| Idaho | 90–150 days | County Treasurer | Trustee / Court Clerk | No | Moves to state after 150 days |
| Maine | 12 months | Local Tax Collector/Sheriff | Court Clerk | No | Municipality level |
| Maryland | 36 months from tax deed sale | Local Tax Collector | Circuit Court Clerk / Trustee | No | — |
| Mississippi | 48 months | County Treasurer | Chancery Court Clerk | No | — |
| Missouri | 3 years | County Sheriff/Tax Collector/Treasurer | Circuit Court Clerk / Trustee | Yes | 1-year redemption first |
| Ohio | 36 months | County Auditor/Treasurer | Court of Common Pleas Clerk | No | — |
| Oklahoma | 12 months | County Treasurer | Court Clerk / Trustee | No | — |
| South Dakota | 12 months | County Treasurer | Court Clerk | No | — |
| Utah | 1 year at county level | County Treasurer | Trustee / District Court Clerk | No | — |
| Virginia | 24 months | Local Treasurer/Tax Collector | Circuit Court Clerk / Trustee | Yes | — |
| Vermont | 12 months | Local Tax Collector/Treasurer | Court Clerk | No | — |
Don't see your state? Contact us — we can help you research your specific situation.
Know Your Rights
Right to Notice
Many states require counties and courts to notify you of surplus funds, though enforcement varies.
Right to Claim
You (or your heirs) have a legal right to file a claim for surplus proceeds from either tax or mortgage foreclosure sales.
Right to Representation
You can hire an attorney or authorized representative to file on your behalf.
Right to Information
Under public records laws, you can request surplus fund lists from your county, court clerk, or trustee.
Tyler v. Hennepin County (2023)
The US Supreme Court ruled that governments cannot keep surplus from tax sales — this strengthened property owners' rights nationwide.
Beware of Scams
Legitimate surplus recovery is real — but scammers also target former homeowners.
- !Red flags: demands for upfront fees, pressure to sign immediately, refusing to identify themselves or their company.
- !You can ALWAYS file a claim yourself for free — you don't need to pay anyone.
- !If you choose to use a representative, understand the fee agreement before signing.
- !AuctionBlock.org helps families recover surplus funds from both tax and mortgage foreclosure sales as a mission-driven company.
Frequently Asked Questions
Is this really my money?
Yes. If your property sold at a foreclosure auction — whether tax or mortgage — for more than the debt owed, the surplus legally belongs to you (after any junior liens are satisfied).
How much could I be owed?
Amounts vary widely, from a few hundred to tens of thousands of dollars. Mortgage foreclosure surplus amounts tend to be larger because properties often carry more equity than the tax debt alone.
What if the sale happened years ago?
Deadlines vary by state (see our state-by-state guide above), but it's worth checking even for older sales.
Do I need a lawyer?
In some states (judicial claims states like Delaware, Missouri, Virginia), yes. In most states, you can file an administrative claim yourself.
What documents do I need?
Typically: government-issued ID, proof of former ownership, and the claim form from the relevant office. Some states require notarized documents.
Can my heirs claim surplus funds?
In many states, yes. Heirs or estate representatives can file claims, though additional documentation may be required.
Is the process different for mortgage surplus vs. tax surplus?
Yes. Tax surplus funds are typically held by the county treasurer or tax collector, and you file a claim directly with that office. Mortgage surplus funds are usually held by the court clerk (in judicial foreclosure states) or the trustee (in non-judicial states). The claim forms, deadlines, and required documents can differ for each.
What if there were other liens on my property?
Surplus funds are distributed in order of lien priority. If you had a mortgage, tax liens, HOA liens, or judgment liens, those creditors may have a claim to the surplus before you. After all valid liens are satisfied, the remaining balance belongs to the former owner.
Can the bank keep my equity after a mortgage foreclosure?
No. If your home sells for more than what you owe (including the mortgage balance, fees, and any junior liens), the lender is not entitled to keep the surplus. That money belongs to you. This applies in all 50 states.
What does AuctionBlock charge for surplus fund recovery?
For surplus fund recovery, AuctionBlock charges a flat $2,000. You only pay if we successfully recover your funds — there is nothing out of pocket. For example, if we recover $20,000 for you, our fee is $2,000 and you receive $18,000. You always have the option to file a claim yourself at no cost.
Need Help Recovering Your Surplus Funds?
AuctionBlock.org helps families recover surplus funds from both tax and mortgage foreclosure sales. We handle the research, paperwork, and filing on your behalf — for a flat $2,000 fee, the lowest in the industry.
Our fee: a flat $2,000. You pay nothing unless we recover your funds.