Recover surplus funds after a non-judicial foreclosure without a lawyer
If your home was sold in foreclosure and whoever bought it at auction paid more than you owed on the mortgage, you may be entitled to the extra money (the surplus funds). Use this guide to try to recover those funds.
1. Fast facts
What are surplus funds?
These are the funds remaining after the property is sold in foreclosure and the mortgage has been paid off. Surplus funds can result from several types of foreclosures. We discuss only non-judicial foreclosures here. For help recovering surplus funds after other types of foreclosures, talk to a lawyer.
Do I need a lawyer?
If you get a written notice (Notice of Deposit of Surplus Funds Resulting from Foreclosure) saying there are surplus funds left over after the sale of your home, think about contacting a lawyer for help, or representing yourself.
Advice or representation from a lawyer can save time and be helpful. But you may be able to do this yourself.
Watch out for scams
Entities will try to “help” you recover the surplus funds and charge you a very high fee. They might tell you the process takes a long time, isn’t certain, and is complicated. None of this is true.
If you plan to hire a lawyer to help you recover the surplus funds, ask for proof of the amount of the surplus funds. Don’t pay more than the reasonable rate for the lawyer’s time that it takes the lawyer to handle the case. Be cautious about any offer that gives the lawyer a percent of the surplus funds or requires to you sign a deed transferring title to the foreclosed property.
If you were the victim of a scam, you may file a complaint with the state Attorney General’s consumer protection division office. You should also try to talk to a lawyer.