Trustees and foreclosure courts are usually required to disclose surplus funds availability and priority of claims.
Check the foreclosure laws in that county/state—some jurisdictions require the trustee to provide surplus breakdowns.
Some trustees may only disclose information to an interested party (e.g., previous owner, heirs, lienholders, or authorized representatives).
🔹Solution: If you are representing a claimant (e.g., previous owner), get a notarized authorization letter allowing you to request information on their behalf.
If the trustee ignores or refuses your request, contact the County Clerk’s Office or Foreclosure Court and ask:
✅"Is there a court record showing surplus funds?"
✅"Has the trustee filed a Surplus Funds Report with the court?"
✅"Are there any motions or filings related to surplus distribution?"
🔹Solution
If the trustee is court-appointed, the county may already have a record of surplus funds and lienholders.
Some counties allow public surplus fund searches online—ask if this option is available.
If surplus funds are considered public record, you can file a Freedom of Information Act (FOIA) request with the county or agency responsible for the funds.
Many states have open records laws that require foreclosure records to be publicly accessible.
🔹Solution
Submit a formal public records request via email or certified mail to the county foreclosure department.
Some counties charge a small fee for processing requests.
If the trustee is withholding information, you can file a motion with the foreclosure court to request disclosure of surplus funds.
Some states require a court order for trustees to release funds, so this step may be necessary anyway.
🔹Steps to File a Motion:
Obtain the foreclosure case number from the county.
File a Motion for Surplus Funds Disclosure in the court handling the foreclosure.
The court will schedule a hearing or issue an order for the trustee to provide the breakdown.
If the trustee is ignoring your requests, send a formal demand letter via certified mail.
📍 Sample Demand Letter:
[Your Name]
[Your Address]
[City, State, ZIP]
[Your Phone Number]
[Your Email]
[Date]
To: [Trustee Name or Foreclosure Attorney]
[Trustee’s Address]
Subject: Formal Request for Surplus Funds Information – Case #[Foreclosure Case Number]
Dear [Trustee’s Name],
I am formally requesting information regarding the surplus funds from the foreclosure sale of [Property Address] that took place on [Sale Date] in [County Name].
I understand that surplus funds are typically distributed according to lien priority, and I am seeking confirmation on the amount available, any outstanding claims, and the procedures required to submit a claim.
Per [State Foreclosure Law or County Rules], surplus funds are subject to public record, and as an interested party, I have the right to request this information. If this information is not provided within [reasonable timeframe, e.g., 10 business days], I may be required to escalate this matter through the county court system.
Please provide the requested information or instructions on how I can obtain it. I appreciate your cooperation.
Sincerely,
[Your Name]
[Your Company Name (if applicable)]
If the trustee fails to comply, you can file a complaint with:
✅The State Bar Association (if they are an attorney handling the surplus).
✅The State Department of Financial Institutions (if they are a licensed trustee).
✅The County Court (if the trustee is court-appointed).
🔹How to File a Complaint:
Contact the appropriate agency’s website and file a formal complaint for non-disclosure.
Many state bar associations discipline foreclosure attorneys who refuse to release required information.
🚀Final Steps
If the Trustee Won't Cooperate:
✅Check County Records for any surplus report.
✅File a FOIA/Public Records Request with the county.
✅Submit a Motion in Court to force disclosure.
✅Send a Certified Demand Letter to put legal pressure.
✅File a Complaint against the trustee for non-compliance.
