Surplus Funds
When a foreclosed property sells for more than the debt, the difference is not the bank's.
It may belong to the former owner — or, if that person has died, to their heirs. The money usually sits with a county or a court, and most people never learn it is there.
How surplus funds arise
A house is sold at a foreclosure auction or a tax sale. The sale brings in more than the mortgage balance, the tax debt, and the costs of sale. What is left over is the surplus, and it does not belong to the lender or the county — it belongs to the party whose interest was extinguished by the sale, most often the former owner.
The office holding it is generally required to hold it for the owner. It is not generally required to go find them.
This is not the same as unclaimed property
The difference matters, and it changes how a claim is handled.
- Surplus funds are usually held by a county, sheriff, or clerk of court — not the state treasurer.
- The process is set by that jurisdiction, and it varies widely.
- In judicial foreclosure states, claiming a surplus can require a motion filed with the court that ordered the sale.
- Deadlines exist. In some jurisdictions unclaimed surplus is eventually forfeited.
What we do
We locate the former owners and, where the owner has died, their heirs. We research the ownership and title history, establish who is entitled, and assemble the records and documentation a claim requires.
Where a matter must be filed with a court, we work with licensed legal counsel. We do not provide legal services and we do not represent anyone in court.
Our fee
For surplus-funds matters, our fee is up to 15% of the amount actually recovered. If nothing is recovered, you owe us no fee. Third-party costs — certified records, notarization, court filings, or attorney involvement — are disclosed and agreed in writing before they are incurred. See fees in detail.
Some jurisdictions set a time limit after which surplus funds are forfeited. We do not say this to rush you, and we do not use countdowns or pressure tactics. We say it because it is true, and because it is a reason to look into it rather than set it aside.
No Social Security number, bank login, card number, gift cards, cryptocurrency, wire transfer, or remote access to your device. If someone claiming to be from ZMelt asks for any of them, it is not us. Call (319) 850-4215.
Talk to us
A first conversation costs nothing and commits you to nothing. If we think you should handle it yourself, we will tell you.