What Are Surplus Funds?
Surplus funds are the remaining funds that are left over from a mortgage or tax foreclosure. When property taxes or mortgage payments are unpaid for an extended period of time, the lender or the county will foreclose upon the property. If the property sells for greater than what's owed, the original owner is entitled to the excess funds, minus any liens on the property.
Foreclosure
A foreclosure occurs when taxes, mortgage, or liens are left unpaid for a period of time. The interested party will take possession of the house and auction the property in order to recover their financial interest.
Auction
In most states, if the bank or county has foreclosed on a property, it is then sold at auction. The bank or county is only entitled to the amount owed, so if the property sells for a great amount than what is owed, the surplus amount is generally entitled to the original owner.
Surplus Funds
If there are surplus available, redemption periods vary by state, meaning that you may have to wait in order to receive your funds. The reason is that other lien holders have a certain amount of time to file claim to any remaining funds. The original owners surplus funds must be claimed within a certain period. If left unclaimed for a period of time, the funds become property of the state.
Recovering Your Funds
Recovering surplus funds can be a time consuming tedious process which sometimes involves working directly with the county, trustees, sherif, and attorneys in order to ensure a successful outcome.
What now?
Our services require no upfront fees or cost to you. We will work diligently with the county and/or trustees to ensure that you receive the funds for which you are entitled. When it comes to working with counties, accuracy and knowledge is paramount in order to receive your funds. Let us take care of everything and assist you in obtaining what is rightfully yours. Remember, we do not get paid if you do not get paid.