What Are Foreclosure Surplus Funds?

As a surplus funds lawyer at E. Albert Law, I help Georgia residents avoid scams and claim money owed to them after a foreclosure sale of their home at auction.

Surplus funds, also known as excess funds, overages, or excess proceeds, are left over money that may be claimed by a homeowner when a foreclosed property is sold at auction for more than what was owed in mortgage payments or property taxes. The process of surplus funds recovery is often handled by an attorney, company, or agent.

Surplus Funds Recovery

At times, some homeowners are not able to keep up with mortgage payments or pay the back taxes owed on their homes. This will cause the Georgia foreclosure process to then begin.

When this happens, homeowners can lose their homes in what are called tax sales, sheriff's sales, or a mortgage foreclosure sale, which is a public auction where foreclosed properties are sold to the highest bidder in order to pay off the debt.

Sometimes foreclosure sales generate more money than required to pay off the debt, resulting in extra proceeds.

Any surplus from tax or mortgage foreclosure sales are subject to priority claims. This means that those persons/parties with a superior right may recover the overage.

This extra money may be claimed by the person who owned the home at the time of the foreclosure sale, the owner of each security deed that affects the property, or any other party that has a lien or recorded equity interest in the property at the time it is sold.

The lender or the county cannot legally keep any overages exceeding what was owed to them unless the overage amount remains unclaimed for a certain amount of time.

Depending on the laws of the state, the previous owner has anywhere from a few months to a few years to claim the funds. However, if it remains unclaimed for too long, the money becomes the property of the county or the lender.

In Georgia, claimants have up to 5 years after a tax sale to claim overages before they are paid to the state.

Surplus Funds Lawyer

As a lawyer, I have experience working with county governments and trustees to process claims in the least amount of time in order to help claimants recover their money as soon as possible.

I have helped homeowners recover anywhere from $5,000 to $200,000 in mortgage overages and tax overages that rightfully belonged to them after a foreclosure.

We work on a contingency fee basis with our clients, so if we are unable to recover money, you do not have to pay.

Call E. Albert Law today at 678-664-4878 or email me at surplusfunds@ealbertlaw.com for your consultation.

Attorney Esther Mesidor

E. Albert Law