Widowed, Foreclosed, and Forgotten: Why Elderly Homeowners Are Most at Risk of Losing Surplus

Senior citizens face an overwhelming legal maze after foreclosure, particularly when they are widowed, isolated, or lack consistent access to legal guiSenior citizens are among the most vulnerable groups affected by foreclosure—and they’re also the most likely to miss out on surplus funds left over after the sale of their home. But what are surplus funds, and why are they so often unclaimed?

Surplus funds—also known as excess proceeds—are the remaining money from a foreclosure sale after the mortgage balance, taxes, and court costs have been paid. For example, if a property sells at auction for $250,000 and the debts total only $180,000, the $70,000 surplus legally belongs to the former homeowner or their heirs. In most states, this money can be claimed through a court process, but if no claim is filed in time, the funds may be forfeited permanently.

Unfortunately, senior homeowners often face significant barriers to recovering these funds. Many don’t receive adequate notice, don’t understand their rights, or are too overwhelmed by health or financial stress to take action. Widows and widowers may not realize they need to open an estate to access funds, and adult children frequently learn about the foreclosure too late.

How to Claim Surplus Funds After Foreclosure:

1. Check if surplus funds are available. Visit your county court’s website or contact the clerk of court to see if excess proceeds were generated after the foreclosure.
2. File a claim with the court. This usually involves submitting a petition or motion, along with proof of identity and ownership (or heirship).
3. Open an estate if the homeowner is deceased. In most cases, an executor or personal representative must be appointed to receive the funds.
4. Follow your state’s deadline. Deadlines to claim surplus funds vary by state—some as short as 30 days, others allowing up to one year or more.
5. Seek professional help. An attorney or surplus fund recovery service can assist with filing, court appearances, and ensuring funds are not lost to errors or delays.

At The Foreclosure Focus, we are committed to raising awareness about this issue and helping families recover money they may not even know exists. Our latest report outlines common mistakes, provides a step-by-step surplus fund claim guide, and includes a state-by-state deadline chart to help you act before it’s too late.

If you’re asking, “What are surplus funds?”, “How do I claim surplus funds after foreclosure?”, or “Can heirs recover excess proceeds?”—this guide is for you.

Don’t let decades of home equity go unclaimed. Visit The Foreclosure Focus to learn more about surplus funds, download free claim resources, and take the first step toward recovery today.