Surplus Funds Lien-Checking Checklist

Property Details:

☐Owner Name: ____________
 ☐ Property Address: ____________
 ☐ Parcel/APN Number: ____________
 ☐ Sale Date: ____________
 ☐ Foreclosure Case Number: ____________
 ☐ County: ____________
 ☐ Surplus Amount Available: $___________

Step 1: Determine Sale Type

Mortgage Foreclosure Sale
 ☐ Tax Sale (Tax Lien or Tax Deed)
 ☐ HOA Foreclosure Sale

Step 2: Check for Mortgages & Recorded Liens

County Recorder’s Office (Clerk of Courts) Search
 ☐ Mortgage Liens (First & Subordinate)
 ☐ Judgment Liens
 ☐ HOA Liens
 ☐ Mechanic’s Liens
 ☐ IRS/State Tax Liens
 ☐ UCC Filings (if property was used as collateral for a business loan)
 ☐ Request a Title History Report

Optional: Use DataTree, PropStream, or a Title Company for a Lien Report.

Step 3: Verify Property Tax Liens

☐Check County Tax Assessor or Tax Collector’s Office
 ☐ Look for Delinquent Property Taxes
 ☐ Verify if a Tax Lien Sale occurred
 ☐ Request a Tax Lien Report from the county
☐ Check the State Department of Revenue for State Tax Liens

Step 4: Check for Federal & State Judgement Liens

☐Search County & State Court Records
☐ Look for Judgments, Lawsuits, or Unpaid Loans
☐ Search for Child Support Liens
☐ Search PACER for Federal Judgments & Bankruptcy Cases
☐ Check IRS Lien Database for Federal Tax Liens

Step 5: Verify HOA Liens (If Applicable)

☐Contact Homeowners Association (HOA)
☐ Ask if there are Delinquent Dues or Special Assessments
☐ Check County Records for Recorded HOA Liens

Step 6: Check for Municipal & Utility Liens

☐Contact City Treasurer’s Office or Utility Department
☐ Search for Unpaid Water, Sewer, Trash, or Energy Bills
☐ Check for Nuisance or Code Violation Fines

Step 7: Check for Estate & Probate Issues

☐Search County Probate Court Records
☐ Verify if the owner is Deceased
☐ Check for an Open Probate Case
☐ Identify Heirs or Executors

Step 8: Check for Environmental Liens

☐Contact County Environmental Protection Office
☐ Search for Environmental Fines or Cleanup Costs

Step 9: Check for Unrecorded Mechanics Liens

☐Contact County Recorder’s Office or State Contractor Board
☐ Search for Pending Mechanic’s Liens

Step 10: Check for Pending Lawsuits or Litigation

☐Search County Civil Court Records
☐ Look for Active Lawsuits or Pending Litigation

Step 11: Check for IRS Tax Offsets

☐Contact IRS Taxpayer Advocate Service
☐ Verify if the owner has Unpaid Federal Taxes, Child Support, or Government Debts

Step 12: Check for Bankruptcy Court for Pending Claims

☐Search PACER (Federal Bankruptcy Records)
☐ Check County Clerk’s Bankruptcy Filings
☐ If owner filed Chapter 7 or 13 Bankruptcy, confirm if surplus funds go to creditors

Step 13: Contact the Trustee or Court Handling the Surplus

☐Request a Surplus Funds Breakdown
☐ Determine if Lienholders have Priority Claims

Step 14: Final Verification & Claim Decision

☐Compile All Lien Data (Amounts & Priority Ranking)
☐ If No Superior Liens Exist, proceed with the claim
☐ If Liens Exceed the Surplus Amount, evaluate if the claim is worth pursuing

Choose Claim Type:

☐Uncontested Claim (No liens or minimal claims)
☐ Contested Claim (Other lienholders or disputes)

Required Documentation for Filing a Claim:

☐Owner ID & Affidavit
☐ Proof of Ownership
☐ Foreclosure Case Number
☐ Lien Search Report