If your home sold at a foreclosure or tax sale for more than was owed, the extra money (surplus funds) may belong to you. It is usually held by a trustee, clerk of court, sheriff, or county treasurer. You generally claim it by filing a written claim or court motion, with proof of ownership, before your state's deadline.
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Losing a home is hard, and it can feel like there is nothing left to save. There may still be money that is legally yours, and you can often claim it yourself.
Surplus funds are the money left over when a home sells at auction for more than the debt, fees, and costs. You may also see them called excess proceeds or overage.
Here is a simple example. The loan balance plus fees is $180,000. The home sells at auction for $230,000. After the lender and any other liens are paid, the extra is surplus.
Surplus is paid in order of priority. Second mortgages, HELOCs, HOA liens, and judgment liens usually get paid before the former owner. So a surplus on paper does not always mean money for you. Still, many former owners never claim money they were owed, often because the notice went to the old address. Learn more about what happens to surplus funds after an auction.
The steps are similar in most states, even though the forms and deadlines differ.
Many owners can do this on their own. If there are competing liens, a probate issue, or a court hearing, a local attorney can help.
This table covers who holds the money and how to claim it in 15 states. Rules change, and counties handle details differently. Where we could not confirm a rule from the statute or an official source, we say "Check with the county."
| State | Mortgage foreclosure surplus | Tax foreclosure surplus |
|---|---|---|
| Texas | Usually the trustee pays it out. If unclaimed, the holder may pay it to the county treasurer, where you have 2 years to claim it (Property Code §70.007). | Petition the court that ordered the sale before the 2nd anniversary of the sale (Tax Code §34.04). Non-attorneys may not charge a fee; attorney fees are capped at 25% or $1,000, whichever is less. |
| Florida | Clerk of court. The owner of record when the lis pendens was filed is presumed entitled after junior liens are paid. Unclaimed surplus is reported as unclaimed property 1 year after the sale (§45.032). | Clerk holds surplus from tax deed sales; claims are generally due within 120 days of the clerk's notice (§197.582). State law already returned surplus before Tyler. |
| California | Trustee. The trustee mails notice within 30 days after the deed; you have 30 days from that notice to send a written claim. Disputed funds go to the superior court clerk (Civ. Code §2924j). | File a claim with the county within 1 year after the tax collector's deed is recorded (Rev. & Tax. Code §4675). Anyone helping you must tell you that you can file directly at no cost. |
| Georgia | Check with the county | Tax commissioner or sheriff holds excess funds and must mail notice within 30 days. Claims go through the county's process or a superior court interpleader. After 5 years, funds go to the state (O.C.G.A. §48-4-5). |
| North Carolina | Clerk of superior court when the trustee cannot find the owner or claims conflict (G.S. §45-21.31). Claim through a special proceeding before the clerk (§45-21.32). | Check with the county |
| New York | Court. File a written notice of claim with the county clerk where the referee's report of sale is filed; the court decides who gets paid, often through a referee (RPAPL §1361). | Changed after Tyler in 2024 (A.8805-C, Part BB) to return surplus to former owners. Process varies by county or city. |
| Virginia | Check with the county | Clerk of the circuit court. Claim within 2 years after the court confirms the sale, or the money goes to the locality (Code §58.1-3967). |
| Illinois | Check with the county | Changed after Tyler: a law signed July 10, 2026 moves to tax-deed auctions that return remaining proceeds to the former owner, phasing in over several years (Cook County by about 2030). Check with the county for current claim rules. |
| Ohio | Check with the county | A reform bill (HB 86) to return tax foreclosure surplus passed the Ohio House in 2025 but had not become law at our last check. Check with the county. |
| Pennsylvania | Check with the county | Check with the county |
| New Jersey | Check with the county | Changed after Tyler in 2024 (S.2334) to protect owners' surplus equity. Check with the county. |
| South Carolina | Check with the county | Check with the county |
| Indiana | Check with the county | Tax sale surplus goes into a county tax sale surplus fund run by the county auditor. File a verified claim within 3 years after the tax sale, or the money goes to the county general fund (Ind. Code §6-1.1-24-7). |
| Michigan | Check with the county | Send a notarized notice of intent to claim (Treasury form) to the foreclosing unit, usually the county treasurer, by July 1 after foreclosure; then file a court motion between Feb. 1 and May 15 after the sale (MCL §211.78t). This process predates Tyler. |
| Arizona | Check with the county | Changed after Tyler in 2024 (S.B. 1431). Check with the county for the claim process. |
A trustee sale and a tax sale are separate processes, even for the same home. Always confirm the current rule with the office holding the money or with a local attorney.
In Tyler v. Hennepin County (2023), the U.S. Supreme Court ruled 9–0 that a county cannot sell a home for unpaid taxes and keep the extra money. That would be a taking of property without just compensation.
Most of the states above already returned tax sale surplus before 2023. A smaller group had let governments keep it, and several of those changed their laws in 2024, including Arizona, New Jersey, and New York. Illinois followed with a new law in July 2026. In 2026, the Court added in Pung v. Isabella County that owners are generally owed the surplus from a fairly run sale, not the home's full market value.
If you lost a home to unpaid taxes, read about how property tax foreclosure works and ask the county treasurer whether a surplus exists.
Yes, surplus funds are real, and some recovery companies are legitimate. But you do not need a company to claim your own money. Most counties and courts let owners file directly, often for little or no cost.
Some states limit what recovery companies can charge or do:
If you want help, our surplus funds recovery service explains how we work, including fees in writing up front.
Scammers read the same auction results that legitimate companies do. Be careful if someone:
Before signing anything, call the clerk or trustee yourself to confirm the amount. You can also compare notes with our list of foreclosure scams to avoid.
Requirements vary, but most offices ask for:
Sources (checked 2026-09-26):
It depends on your state and the type of sale. In California you have 30 days from the trustee's notice for a trustee sale, while Texas gives 2 years after a tax sale. Ask the office holding the money for your exact deadline.
Contact the trustee, clerk of court, or county treasurer that handled the sale and ask whether any excess proceeds exist. Many counties post surplus funds lists online. Check the list of unclaimed property in your state too.
Possibly. The surplus itself is part of your sale proceeds, so it may affect whether you have a taxable gain on the home. Talk to a tax professional about your situation.
Often yes. If the owner has died, heirs or the estate's personal representative can usually claim the surplus. The office will usually ask for probate papers or a small-estate affidavit.
Unclaimed surplus is usually sent to the state's unclaimed property program or kept by the county after the deadline. In Florida, mortgage foreclosure surplus is reported as unclaimed one year after the sale. In Virginia, unclaimed tax sale surplus goes to the locality after two years.
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