How Long Does It Take To Get Surplus Funds?
Most people would like their surplus funds attorney to recover funds in as little time as possible after finding out that they have money owed to them, however not all surplus funds recovery claims are resolved quickly due to several factors that can affect the length of a claim.
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.
Simple claims generally take less time.
Here are characteristics of a relatively straightforward surplus funds claim:
The previous property owner is still living.
The previous property owner was the sole property owner.
There are no competing claims for the funds.
There are no unresolved liens filed against the property.
We would expect a case like this to resolve in 90-120 days, however claiming funds will likely take more time when these criteria are not met.
When the previous property owner is deceased, a surplus funds claim may take longer than 90-120 days.
When the previous property owner is deceased and an heir is claiming the funds, some trustees will require that a formal probate estate be opened before any excess proceeds can be claimed, which typically takes 3 to 6 months.
When the previous property owner was not the sole property owner, a claim may take longer than 90-120 days.
If there were multiple property owners at the time of the foreclosure sale, it may take more time to recover tax sale overages or mortgage surplus funds. Each owner named on the deed would be entitled to their respective portion of funds. This means multiple claims are submitted and multiple lien searches are required depending on how many property owners are named on the deed. It is possible to claim only a portion of the funds. The ability to do this depends on the county and/or trustee that we are working with to get the funds disbursed.
When there are competing claims for surplus funds, a claim may take longer than 90-120 days.
When there are competing claims for mortgage overages, the trustee may feel more comfortable with a judge deciding who should get the money. The trustee has the power to interplead any excess funds. When funds are interpled, that means that the funds are paid into a court registry. The only way to get the funds out of the court registry is to have a judge order funds to be distributed. Because an interpleader goes through court, it can extend the timeline of a claim.
When there is a bankruptcy, a surplus funds claim may take longer than 90-120 days.
When there is an open bankruptcy estate, oftentimes excess proceeds are paid into the bankruptcy estate (depending on the bankruptcy that has been filed). In other circumstances, the bankruptcy must be discharged before proceeds can be claimed. A bankruptcy discharge releases the debtor from certain debts and obligations. Because we may be required to pay the bankruptcy estate or wait for the bankruptcy estate to be discharged, the claim will normally take longer than usual.
When there are liens that must be resolved, a surplus funds claim may take longer than 90-120 days.
A lien is a claim or legal right against an asset. When claiming excess funds, if there is a valid lien against the foreclosed property, that lien must be resolved before the excess funds are disbursed. In order for a lien to be paid off, we have to find them, request pay offs, negotiate balances (in certain cases), and pay off balances. This can extend the time it takes to resolve a claim.
Waiting for a foreclosure deed to be filed can add up to 90 days to a surplus funds claim.
Before surplus funds can be disbursed, the foreclosing party has to file a foreclosure deed. The foreclosure deed is called a deed under power of sale. There is a 90-day deadline to file the deed under power of sale. So, there may be up to 90 days added to the process because the funds cannot be disbursed without the deed under power of sale.
At E. Albert Law, we work diligently to process surplus funds recovery claims as quickly as possible. While times vary, we often hear that clients are grateful for how we have expedited their claim.
Call us at 678-664-4878 for your free consultation or email us at surplusfunds@ealbertlaw.com.
Attorney Esther Mesidor
E. Albert Law
