What is Foreclosure overages
What is Foreclosure overages
Foreclosure overages, also referred to as excess proceeds or surplus funds, denote the extra amount of money remaining after a foreclosed property is sold at auction for a sum surpassing the mortgage and/or tax debt. Sometimes, the auction price exceeds the outstanding mortgage balance, resulting in surplus funds owed to the former homeowner or lien holders.
These surplus funds from foreclosures are typically held by the court or governing body overseeing the sale.Former homeowners or other entitled parties can claim these funds by adhering to the legal procedures outlined by the court or governing body. Failure to claim the surplus funds within a specified timeframe may lead to their transfer to the state as unclaimed property.You might wonder why former homeowners are unaware of their entitled foreclosure overages. Generally, when a sale generates excess proceeds, the tax commissioner’s office, trustee, or the fund custodian is obligated to notify the foreclosed homeowner of the surplus funds within thirty days of the sale. However, this notification is often sent to the last known address of the foreclosed owner, which is typically the vacated foreclosed property. Consequently, the former homeowner may not receive the notice as they no longer reside at the address to which it was sent.These surplus funds from foreclosures are typically held by the court or governing body overseeing the sale.
You can learn more from our asked questions
Recovering foreclosure overages can be a intricate process, and it is recommended to seek legal counsel or guidance to navigate the required steps for reclaiming these funds. If
No. Absolutely not. We work on a contingency basis and only get paid if we recover funds for you. Beware of any company that asks you for any money upfront.
No we do not. Beware of any company that asks you for your bank account or credit card information.
We need to verify your contact information and your identity. If you an heir, we will need to verify your relationship to the decedent and your right to the funds
Surplus funds from a foreclosure can vary depending on the specific circumstances and the laws of the state where the foreclosure took place. In some cases, surplus funds may be distributed shortly after the foreclosure sale, while in other cases, it may take several weeks or even months for the funds to be distributed to the rightful parties. Though the average surplus funds claim is resolved in 90-120 days, certain claims have been completed within 30 days and more complicated claims may take longer than 120 days.
In addition to being at the mercy of the courts below is a few examples of why the process would take more than 120 days:
1 When the previous property owner is deceased.
2 When the previous property owner was not the sole property owner.
3 When there are competing claims for surplus funds.
4 When there are liens that must be resolved.
5 Waiting for a foreclosure deed to be filed.
