Many homeowners who have recently experienced foreclosure may still have money owed to them — and they may not even know it. Surplus funds, the excess proceeds from a foreclosure auction, are often left unclaimed due to a lack of public awareness and the complexity of the recovery process.
These funds arise when a foreclosed property sells for more than the total amount owed to the lender and other lienholders. In such cases, the remaining balance — sometimes tens of thousands of dollars — is legally owed to the former homeowner.
“Too often, individuals walk away from a foreclosure believing they’ve lost everything, when in reality, they’re entitled to a financial recovery,” said a spokesperson from a local surplus recovery service.
Eligible individuals must file a formal claim with the court and meet state-specific deadlines. In some states, unclaimed funds are turned over to the state treasury after a set period.
Homeowners are encouraged to research their case or consult with a professional to determine if funds are available.
