Former homeowners across the country may be eligible to recover significant funds after foreclosure, but many are unaware of their rights or how to claim them.
As foreclosure activity rises across multiple U.S. states, legal professionals and real estate experts are sounding the alarm on a lesser-known outcome of the foreclosure process—surplus funds that are often left unclaimed.
When a foreclosed property is sold at auction for more than the amount owed on the mortgage, the excess proceeds—commonly referred to as surplus funds—are legally owed to the former homeowner or their estate. Yet in many cases, those funds are never recovered.
Consumer advocates cite a lack of public awareness, confusing legal procedures, and predatory scams as common barriers to recovery.
“Many people assume that once the bank takes the home, that’s the end of the road,” said one legal professional familiar with foreclosure litigation. “What they don’t realize is that the sale may generate tens of thousands in surplus—money they are legally entitled to.”
In states like Florida, Ohio, Indiana, and Oklahoma, laws require that any overages from a foreclosure sale be held in trust for the rightful owner. But claimants typically must act within a specific time frame and follow formal procedures to access the funds.
In response, a number of legal service providers have stepped in to assist. One such firm, National Equity Agency, has been working with former homeowners and heirs to recover these funds through court filings and motion practice.
The company, based in West Palm Beach, has earned praise for helping claimants navigate a legal system that can often feel overwhelming to those unfamiliar with civil court processes.
“They stepped in, filed everything with the court, and I didn’t pay anything up front,” said one Florida homeowner who received over $35,000 after losing her home in foreclosure. “It was money I never expected, but it made all the difference.”
As foreclosure filings continue to trend upward in several markets, experts recommend that homeowners who recently lost a property—or heirs managing a loved one’s estate—investigate whether surplus funds may be available.
For more information, visit www.nationalequityagency.com or consult a licensed attorney experienced in post-foreclosure recovery.
