What are Foreclosure Surplus Funds and Who Can Claim Them?

Act Now


If your property is in foreclosure and sells at a judicial sale for more than what you owed on the mortgage, the leftover money is called a surplus or surplus funds. Surplus funds after a judicial sale are calculated by subtracting the outstanding mortgage loan balance from the judicial sales proceeds, then adding any lender costs incurred during the foreclosure. If there are no valid junior liens on the property, the homeowner is entitled to the leftover surplus funds. In the event that there is a surplus, the homeowner should receive a Notice of Surplus to his or her last known address. The surplus funds will typically be held by a trustee or deposited with the court, which gives the homeowner the chance to make a legal claim to the funds.

How can I get my surplus funds?

To recover the surplus funds, a homeowner should act quickly to make his or her claim. Once a final order of foreclosure is entered, the homeowner can file a Petition with the court to obtain the surplus funds. This is a called a "Petition to Turnover Surplus Funds." A judge will enter an order granting the Petition, which will give the homeowner a right to the foreclosure surplus funds. The process may require a homeowner to provide proof of ownership to the trustee or court, submit a claim from, file a petition with the court, and/or attend a court hearing. In the event the the surplus funds are not properly claimed, they may be treated by the court as unclaimed property.

What should I do if I am entitled to surplus funds?

Act quickly if you are entitled to surplus funds. Although the process of claiming surplus funds is not complicated, timing is important. At The Law Center, we are a team of specialists that are passionate about the foreclosure process from start to finish and helping homeowners at the highest level. Our staff and attorneys approach each client and each property as a new challenge, one that requires thorough analysis, zealous representation, and thoughtful strategy. It’s your home, let The Law Center help you defend it.

Call us now and speak with a foreclosure expert on how you can make the foreclosure process work for you -- not against you. (312) 600-8815

LET’s Get in touch


223 W Jackson Blvd
Suite 630
Chicago, Illinois 60606

Email or text Us

Let’s get social

Disclaimer – The Law Center, LLC is not a debt collector and is not affiliated with your mortgage lender, service or any government entity. The attorney responsible for the content of this advertisement is IL Attorney B. Fard. Nothing on this website is to be construed as a guarantee or prediction of result. No recipient of content from this site, client, whether current or otherwise, should act or refrain from acting based on information at this site. Any and all information on this website is not intended to, nor does it, constitute or establish an attorney-client relationship.