Understanding Surplus Funds: The Money Left Behind After Foreclosure

When homes are sold at auction due to foreclosure, the final bid often exceeds what’s owed on the mortgage. That difference — known as surplus funds — is placed in the court registry and can be claimed by the homeowner or their heirs. But most people have never heard of this. Legal advocates recommend that anyone who has lost a property to foreclosure in the last few years verify if unclaimed surplus funds exist under their name.