Palm County System is Holding Millions in Forgotten Surplus Funds

Across the country, county clerks hold millions in surplus funds from foreclosure sales. In most cases, the funds are never claimed—due to a lack of awareness, administrative backlogs, or failure to notify former homeowners and heirs.

The Foreclosure Focus is advocating for a national surplus database, similar to unclaimed property registries, to help families search and recover what’s rightfully theirs. This release calls on state legislatures to mandate greater transparency and publish searchable surplus lists.

If the homeowner has passed away, heirs may be eligible, but they’ll need to go through probate or file additional paperwork.

Across the United States, county clerks are holding millions of dollars in surplus funds left over from foreclosure auctions. These surplus proceeds—funds that remain after the mortgage and any other debts are satisfied—rightfully belong to the former homeowner or their heirs. Yet, in most cases, the money goes unclaimed. This widespread issue stems from a combination of public unawareness, administrative inefficiencies, and a lack of proactive notification by local governments.

The Foreclosure Focus is calling on state legislatures to take urgent action. We are advocating for the creation of a national surplus database, modeled after existing unclaimed property registries. This tool would allow families, heirs, and legal representatives to easily search for available funds, verify their eligibility, and begin the claims process. Transparency is key: surplus funds should not remain hidden in obscure court records or buried within fragmented county websites.

Too often, former homeowners are unaware that they may be entitled to tens or even hundreds of thousands of dollars following a foreclosure sale. In cases where the homeowner has passed away, the situation becomes even more complicated. Heirs may still be eligible to recover surplus funds, but the legal process becomes more burdensome. They must often open an estate through probate court, file affidavits of heirship, or pursue formal claims through attorneys—without ever being formally notified that the money exists.

The Foreclosure Focus urges every state to implement legislation that requires county clerks and court administrators to:

• Maintain and publish regularly updated, searchable surplus funds lists online;
• Notify homeowners and heirs via certified mail or public notice when surplus funds are available;
• Partner with state treasurers and unclaimed property divisions to streamline the recovery process;
• Extend deadlines or hold funds in trust where probate or inheritance processes are pending.

We believe that families should not lose access to funds that could help them rebuild their lives simply because they were never told the money was there.