What Are Surplus Funds After Foreclosure? A Complete Guide
Have you recently gone through a foreclosure and wondered if there's any money left over from the sale of your home? You're not alone. Many former homeowners are surprised to learn about surplus funds, also known as excess proceeds or overage—the money remaining after the foreclosure auction pays off the mortgage, liens, and sale costs.
How Surplus Funds Work
When a lender forecloses and sells your property at auction, the sale price sometimes exceeds the total amount owed (including the loan balance, interest, fees, and costs). This extra money doesn't go to the lender or the government—it rightfully belongs to you, the former owner (or your heirs).
For example:
If the auction sells your home for $300,000 but the total owed was $250,000, the $50,000 difference could be surplus funds available for you to claim.
After paying any junior liens (like second mortgages or judgments), the remaining amount is yours. This is a legal right in most cases, designed to return equity to homeowners.
Who Is Entitled to Surplus Funds?
The recorded owner at the time of foreclosure.
Heirs if the owner is deceased.
Even if there were multiple liens, you may still receive funds after higher-priority claims are paid.
Unfortunately, many people never claim these funds because they don't know they exist or assume everything goes to the bank.
At Heritage Equity Recovery, we specialize in helping former owners reclaim these often-overlooked funds on a contingency basis—no upfront fees. If we don't recover money, you owe nothing.
Ready to check if you're owed surplus funds? Start Your Free Claim Check
Published: January 1, 2026 Categories: Surplus Funds, Foreclosure Recovery
