What Are Surplus Funds?
Surplus funds, also known as excess proceeds, mortgage surplus, or tax overbids, are the remaining funds paid to the previous owner after a tax or mortgage foreclosure auction. When property taxes or mortgage payments remain unpaid for an extended period, the county or lender will foreclose on the property and hold an auction.
• Tax Foreclosures: The county seeks only to recover the taxes owed. If the property sells for more than the amount due, the excess proceeds are payable to the previous owner.
• Mortgage Foreclosures: Banks seek only to recover the amount specified in the final judgment or final writ. Any amount over that is payable to the previous owner, heirs, and lienholders. The sooner we file a claim, the better. In some cases, delays may cause the funds to be forfeited.
