If you’ve received a letter from a Clerk of Court that says you’re entitled to ‘surplus funds’ – you’ve come to the right place!

Surplus Funds, also referred to as “excess funds,” or “overages,” is a term used to refer to any surplus (leftover) money that results from a foreclosure property auction when the winning bid exceeds the amount the lender requires to satisfy their lien. In other words, if the winning bid for the property is for more than what was owed at the time of foreclosure – the foreclosed-on owner may be entitled to the additional surplus amount after the lien has been paid off. 

This ‘surplus’ money results from the sale of a foreclosured home if the winning bid exceeds the amount owed on the lien or property’s debt. 

In order to claim these surplus funds, one has to file a Petition for Surplus Funds, explaining (aka  proving) to the court how and why you are legally entitled to claim the funds.

There are typically no published or standardized claim forms for this particular type of funds claim.

Generally speaking, in order to file a claim for the funds, the claimant (presumably you) will need to engage an experienced attorney to assist in the drafting of a detailed petition laying out the facts and findings of the claim to file and present to the court, as well as, appear in court to represent you as the claimant in a ‘Special Proceedings Hearing’ (a type of court case) held by the Clerk of Court in the county where the funds are held.