You May Have Unclaimed Money From Your Foreclosure

Surplus funds (also called "excess proceeds" or "overages") are the money remaining after a foreclosed property sells at auction for more than the mortgage debt plus associated costs and junior liens. For example, if your home sells at auction for $450,000 and the outstanding mortgage balance was $425,000, the resulting $25,000 surplus legally belongs to you — the former homeowner. In the 2023 decision Tyler v. Hennepin County, the Supreme Court held unanimously that a government may not keep more than it is owed when it sells a home for unpaid property taxes. That case concerned a tax foreclosure rather than a mortgage foreclosure, but it is a strong affirmation of a former owner's right to the equity above the debt.

The foreclosure trustee or court typically sends a "Notice of Surplus Funds" to your last known address after the sale. However, since that address is usually the foreclosed property itself, many homeowners never receive this notice. You can proactively check by contacting the foreclosure trustee (their info appears on the Notice of Trustee Sale), checking with the county clerk of court where surplus funds are deposited, or searching state unclaimed property databases like MissingMoney.com. Contact us for a free consultation — we'll research public records to determine if surplus funds exist from your foreclosure.

We work on a contingency basis: you pay nothing upfront, and if we don’t recover money for you, you owe us nothing.

What we may legally charge depends on the state, and the rules are not simply different percentages — some states cap the fee, some require a specific licence, and some prohibit a non-attorney firm from charging at all. Surplus Recoveries is not a law firm. Here is what we have verified:

• Florida — 12% maximum. Compensation on a surplus assignment may not exceed 12% (Fla. Stat. § 45.033).
• Washington — 5% maximum. It is unlawful to charge more than 5% for locating or recovering foreclosure surplus (restored by HB 1637, 2023).
• North Carolina — 20% maximum, and the agreement must be notarised and signed by a licensed private investigator (N.C.G.S. § 116B-78).
• Texas — a non-attorney may not charge any fee to obtain excess proceeds; an attorney is capped at the lesser of 25% or $1,000 (Tex. Tax Code § 34.04(f)). We therefore cannot take Texas excess-proceeds cases.
• Georgia — non-attorney recovery firms are not recognised by tax commissioners, and third-party agreements are unenforceable for 24 months (O.C.G.A. § 48-4-5). We therefore cannot take Georgia excess-funds cases.
• California — no percentage cap identified, but an agent must prove the amount and source were disclosed to you and that you were told you may claim directly, for free (Cal. Rev. & Tax. Code § 4675).
• New York — no percentage cap identified for surplus money proceedings (N.Y. RPAPL § 1361).

For any state not listed above we have not independently verified a statutory cap, and we will not quote you a figure until we have confirmed the rule that applies to your claim. Our fee will never exceed 12%, and where a state sets a lower limit, that lower limit applies. You will always see the exact figure in writing before you sign anything, and you are always free to file the claim yourself, directly with the county, at no cost.

Timelines are set by the county office processing the claim, not by us, so we will not promise a date. A straightforward claim — single owner, no competing claims, complete documentation — is generally the fastest; a few counties move in a matter of weeks, while others take several months for the same paperwork. More complex situations — such as multiple property owners, competing lienholders, deceased former owners requiring probate, or interpleader actions — can extend to 4-7 months or longer. We work diligently to expedite your claim and keep you informed at every step of the process.

Surplus funds are real and legally protected — state law establishes a former owner's right to claim them, and the Supreme Court has affirmed that governments cannot keep the equity above what they are owed. To verify legitimacy: we never ask for upfront fees; we clearly disclose the full amount you're entitled to before any agreement; you can confirm surplus amounts independently by contacting the trustee or court directly; and you're welcome to check our credentials. Warning signs of scams include: demands for upfront payment, requests to sign over your rights, high-pressure tactics, refusal to disclose actual amounts owed, or offers of small cash payments for signing documents. We encourage you to verify everything independently.

Nearly every state has surplus funds provisions, but the rules on who may file, how long you have, and what a recovery firm may charge differ substantially from state to state — and they differ again between a mortgage foreclosure and a tax sale.

Because we are not a law firm, there are states we cannot serve: Texas prohibits a non-attorney from charging any fee for excess proceeds (Tex. Tax Code § 34.04(f)), and Georgia tax commissioners do not accept claims from non-attorney recovery firms (O.C.G.A. § 48-4-5).

Rather than publish a list that may be out of date for your county, we check your specific situation before taking it on. Contact us and we'll tell you plainly whether we can help, what the deadline appears to be, and what the fee limit is in your state — or tell you that you're better off filing directly with the county yourself.