When a home sells at a foreclosure auction, the winning bid doesn’t always match the loan amount. If the home sells for more than what was owed—including legal fees and court costs—the extra money becomes surplus funds.
These funds don’t automatically go to the bank. In most cases, they are held by the court, waiting to be claimed by the rightful party—usually the former homeowner or their heirs.
Failing to claim these funds in time could mean the money gets turned over to the state or redistributed to other creditors.
