By Jynell D. Berkshire · September 2, 2026
What surplus funds are
When a property is sold at a sheriff sale or foreclosure auction for more than the amount owed on the judgment, costs, and taxes, the extra money is called surplus funds or excess proceeds. The lender is only entitled to what it is owed. The remainder is held by the court clerk or county official until someone proves a right to it.
Who can claim the money
Former owners, heirs of a deceased owner, and junior lienholders such as second mortgage holders or judgment creditors can claim, in order of priority. Priority is decided from the recorded chain of title, not from who files first.
How the claim works
A petition is filed in the court or with the county office holding the funds, notice goes to every interested party, and a judge or official orders disbursement. Deadlines vary by state and are strict.
Get your sale checked
Send the property address, county, and sale date and we will confirm whether money is being held and what the deadline is in that jurisdiction.
This article is general information, not legal advice. Contact Berkshire Law Group about your property.