Your home sold at auction. Some of that money may still be yours.
When a home sells at a foreclosure auction for more than what was owed, the extra money is called surplus funds. Here's how it works in California, and how we can help you find out if there's money waiting for you.
No cost to talk, and no obligation.
What are surplus funds?
At a foreclosure auction, the home goes to the highest bidder. The sale money first pays the costs of the sale and the loan that was foreclosed on. If the winning bid is more than that, the money left over is called surplus funds, also known as excess proceeds or overage.
That leftover money does not go to the bank that foreclosed. Under California law it goes next to anyone else with a recorded claim on the home, such as a second loan or a lien, and then to the former owner.
Surplus funds are not paid out automatically. Someone has to file a claim to receive them.
How it works in California
Most California foreclosures are handled outside of court by a trustee. Here's the general path the money follows.
The home sells at auction
If the winning bid is more than the amount owed plus the costs of the sale, there's a surplus.
The trustee sends notice
The trustee is required to mail notice to the people who may have a claim, usually to the addresses on file. If you've moved, the notice may never reach you.
Claims are reviewed and paid
People with a claim submit it to the trustee. If claims conflict, the money may be sent to the court, and the court decides who gets paid.
Who may be able to claim
Every case is different, but people who may have a claim often include:
Former owners
The people on title when the home was sold, including co-owners.
Heirs of an owner who passed
If the owner passed away, their heirs or estate may be able to claim the funds.
Lienholders
Holders of a second loan or other recorded lien are usually paid before the former owner.
How we can help
You can always file a claim on your own. Many people would rather have someone walk them through it. That's where we come in.
Find out if there's money
We look into the sale to see whether the home sold for more than what was owed.
Find out who's holding it
We figure out whether the funds are with the trustee or have been sent to the court.
Walk you through the claim
We explain the steps and the paperwork in plain English, and connect you with an attorney when your situation needs one.
Check if there are surplus funds
Tell us the address of the home that was sold and we'll reach out after we look into it.
- No cost to talk
- No obligation
- A real person on our team, not a call center
- Prefer to talk now? Call or text (916) 436-3808
Common questions
How do I know if my home had surplus funds?
Not every foreclosure sale has a surplus. It depends on what the home sold for compared to what was owed. Reach out and we'll look into it for you.
Didn't the bank keep all the money?
No. The foreclosing lender is paid what it's owed plus costs. Anything above that is surplus and goes to others with a claim, which may include you.
I moved after the sale. Can I still claim?
Possibly. Notices are often mailed to the old address, which is why many former owners never hear about it. Moving doesn't by itself mean you've lost your claim.
Is there a deadline?
There can be. Timelines depend on whether the funds are still with the trustee or have been sent to the court, so it's best to look into it as soon as you can.
The owner passed away. Can the family claim?
Often, yes. Heirs or the estate may be able to claim. These cases usually need extra paperwork, and we'll point you in the right direction.
Can I do this myself?
Yes. You can file a claim on your own with the trustee or the court. We're here if you'd like help understanding the process.
Facing a foreclosure auction that hasn't happened yet?
If the sale date is still ahead, there may be more options. Learn how we help before the auction.
See options before the sale