Honest responses to what homeowners ask us most. If you need a jurisdiction specific answer that isn’t below, send us a message. We answer every email.
When a property is sold at a foreclosure auction for more than the outstanding mortgage debt, taxes, and allowable costs, the excess is called surplus funds (also “overages” or “excess proceeds”). By statute in every U.S. jurisdiction that conducts foreclosure auctions, those funds belong to the former owner of record, subject to any junior lienholders.
Usually you wouldn’t. Notice procedures vary by state, and in most jurisdictions the only notice is a mailing to the foreclosed address, where you no longer live. The existence of surplus funds is, however, public record at the county level, and we verify it at no cost before asking you to engage.
Typically sales where the auction bid exceeded the debt, common when the home had significant equity, appreciated substantially between origination and foreclosure, or sold at a competitive sale. Tax-lien sales and HOA foreclosures also frequently produce surpluses.
This is entirely state-specific. Some jurisdictions require a claim within one year of the sale; others allow three, five, or longer before funds escheat to the state. Even after escheat, many states permit recovery through the unclaimed-property division, a slower but still viable path. Tell us the state and approximate date, and we’ll tell you where you stand.
We work strictly on contingency. Our fee is a capped percentage of what we recover, stated clearly in our retainer in both percent and estimated dollars. If the claim fails, our fee is zero. If you review our verification and elect not to proceed, our fee is zero.
No. We advance all necessary court and service costs. They are reconciled from the recovery at disbursement. If the claim is unsuccessful, we absorb them, you are never billed.
Yes. Our retainer includes a clear cancellation provision. You may cancel in writing at any time prior to filing at no cost. After filing, cancellation is permitted but limited under certain state rules.
By your choice of check or wire transfer, accompanied by an itemized accounting that shows the gross recovery, any costs advanced and recouped, our capped fee, and the net amount delivered to you.
Timelines vary by jurisdiction and by the complexity of the fund itself. Most claims take 90+ days from filing to disbursement. Contested matters, probate, multiple heirs, or competing junior liens can extend the window further, sometimes several months longer. We give you a realistic estimate up front and flag anything unusual as it arises.
Surplus funds pass to the estate and may be claimed by the personal representative or heirs at law, depending on state probate rules. We work with estates routinely and can coordinate with your probate counsel or, where appropriate, help you open a small estate for the purpose of the claim.
Junior lienholders (second mortgages, judgment liens, HOA) may have priority claims to the surplus before the former homeowner is paid. We identify them during verification and, where appropriate, negotiate releases or present the matter to the court for adjudication. In many cases a meaningful net recovery still reaches the homeowner.
If the funds have escheated to state unclaimed property, recovery is still possible through the state’s claims process, slower, but viable. If they were paid to another claimant improperly, more involved remedies exist. We evaluate and advise.
We think so, and the operative tests are simple. We never ask for money up front. We verify the amount with the holder before quoting it. Our retainer is capped, plain-English, and cancellable.
The recovery of your own surplus funds does not affect your credit. Tax treatment varies: in some cases the recovery is simply a return of equity and is not taxable; in others, portions may be. We are not tax advisors; we strongly recommend a quick conversation with your CPA before disbursement.
Only the professionals assigned to your matter and any parties the court requires to be served. We never sell, rent, or share your data for marketing. Full detail is in our privacy policy.
Ask us for the names of the attorneys who will appear on your behalf and the bar jurisdictions in which they are licensed, we’ll send them by email. Independent verification is encouraged and, in our view, is a sign of a healthy engagement rather than a suspicious one.