Statewide Forms Forms

What are surplus monies?

After a foreclosure, there is often a public sale and transfer of the property (auction). The money from the public sale and transfer is used to pay any liens or judgments against the property that the court finds are valid and take priority over the prior owner’s interests – for example, unpaid mortgage loans or tax liens. After all these valid liens and judgments are paid, any money that is left over from the public sale and transfer of the property is called “surplus monies.”
 

Who can claim surplus monies?

Surplus monies may be claimed by a:

• prior owner (person who owned the property before the foreclosure and sale)
  Note: If the prior owner is deceased, then surplus monies may be claimed by the prior owner’s estate.
• judgment creditor (someone who has a docketed, unpaid judgment against the property)
• lien holder (someone who has a valid, unpaid lien against the property)