How to Check and Verify Surplus Funds in the Surplus Funds Business

Step 1: Identify the Foreclosure Type
Determine How the Property Was Sold

• Mortgage Foreclosure Sale (Bank or private lender foreclosure)

• Tax Lien Sale (County sells a lien to investors)

• Tax Deed Sale (County sells the property outright)

• HOA Foreclosure Sale (Homeowners Association forecloses on unpaid dues)

Why this matters: Different surplus claim processes apply depending on the type of foreclosure.

Step 2: Check the County Foreclosure Records

Find the Foreclosure Sale Results

• Go to the County Clerk, Treasurer, or Sheriff’s Office website (depending on the state).

• Look for a section labeled Foreclosure Auction Results, Surplus Funds List, or Excess Proceeds

Key Information to Confirm:

• Property Address & Parcel Number (APN)

• Owner Name at Time of Sale

• Final Sale Price

• Opening Bid (Minimum Required Bid)

• Lienholder Information (if available)

Example Calculation:

If a home’s foreclosure sale price was $150,000, and the lender's required payoff amount (opening bid) was $100,000, then: $150,000 - $100,000 = $50,000 in surplus funds.

Step 3: Verify Surplus Amount with the County

Confirm Surplus with County Clerk or Trustee

• Call or visit the county Clerk of Court, Treasurer, or Foreclosure Trustee Office.

• Ask:

  • Is there a surplus available for [property address] or [case number]?

  • Who is eligible to claim it?

  • What documents are required for verification?
    

    Some counties post surplus lists publicly, while others require a formal request for information.

Step 4: Check if Others Claims Exist on the Surplus
Identify Any Liens or Competing Claims

• Check for Mortgage & Tax Liens (see lien-checking workflow above)

• Confirm if Any Other Party Has Already Claimed the Surplus

• Verify If the Owner is Deceased (Probate May Be Required)

• Look for Court Orders or Judgments that Could Impact Funds Distribution

Pro Tip: Some counties distribute funds to lienholders before listing surplus as available.

Step 5: Confirm if the Previous Owner is Eligible to Claim
Check If the Previous Owner Can Claim Funds

• If no superior lienholders exist, the last legal owner before the sale is typically entitled to the surplus.

• Confirm identity with county records and match to foreclosure case number.

Situations That Affect Eligibility:

• Deceased Owner → Probate may be needed.

• Bankruptcy → A trustee may have priority.

• IRS or Judgment Liens → May need to be satisfied first.

• Multiple Owners → All may need to sign off.

  Warning: Some counties require a court petition if multiple parties have potential claims

Step 6: Verify Required Documentation for Filing a Claim
Standard Documents Typically Required:

Claimant Identification (Driver’s License, Passport, or State ID)

Proof of Prior Ownership (Deed, Tax Records, or Court Documents)

Foreclosure Sale Case Number & Property Information

Lien Release or Consent from Any Prior Lienholders (If Applicable)

Notarized Affidavit of Claim (County-Specific Forms)

Pro Tip: Some counties require a notarized statement and may also request an attorney to file on behalf of the claimant.

Step 7: Double-Check Everything Before Filing

Compare County Surplus List vs. Sale Records → Ensure the correct amount is listed.

Verify the Property Owner’s Name and Legal Status → Ensure eligibility.
Confirm Lien Status → Avoid surprises.

Review County-Specific Requirements → Rules vary by state and county.