Claim Your Excess Proceeds

Dealing with a foreclosure can be a challenging and emotional experience. However, there's a potential silver lining that many homeowners might not be aware of: the possibility of claiming excess proceeds from the foreclosure sale. This blog aims to guide you through the process of claiming these funds, shedding light on a topic that often remains under-discussed.

Understanding Excess Proceeds from Foreclosure

Excess proceeds, sometimes referred to as surplus funds, are the amount left over after a foreclosed property is sold and all mortgages, liens, and other expenses related to the sale are paid. These funds can provide some financial relief to former homeowners who have gone through the distress of losing their property.

How Do Excess Proceeds Occur?

Excess proceeds are generated when a foreclosed property is sold at a price higher than what is owed in debts and liens. This situation has become increasingly common in real estate markets where property values have surged.

Who is Eligible to Claim Excess Proceeds?

Generally, the former homeowner is entitled to claim these excess proceeds. However, if there are other liens on the property, lienholders might also have a claim. Understanding your local laws and the hierarchy of liens is crucial in determining eligibility.

Steps to Claim Excess Proceeds

1. Stay Informed About the Sale: Keep track of the foreclosure sale and the final sale price of your property.

2. Check for Excess Proceeds: Contact the trustee or entity that conducted the sale to inquire about any excess proceeds.

3. File a Claim: If there are excess proceeds, you'll need to file a claim. This usually involves completing specific forms and providing proof of your identity and former ownership of the property.

4. Provide Necessary Documentation: Be prepared to submit documents such as the deed of trust, identification, and proof of lien releases if applicable.

5. Understand the Timeline: Be aware of the deadlines for filing a claim. Missing these deadlines can mean forfeiting your right to the funds.

6. Await the Decision: After filing, there will be a review process. If there are competing claims, this might involve a court hearing.

Common Challenges in Claiming Excess Proceeds

The process isn't always straightforward. Challenges may include:

  • Navigating complex legal requirements and paperwork.
  • Disputes from other potential claimants.
  • Tight deadlines and bureaucratic delays.

Real-Life Examples

Let's consider a couple of scenarios:

1. John's Case: John's home was foreclosed and sold for $20,000 more than his remaining mortgage. He was able to file a claim and successfully recover these excess proceeds.

2. Maria's Situation: Maria's home had multiple liens. After the sale, there were excess proceeds, but she had to navigate claims from other lienholders.

How a Real Estate Professional Can Help

While it's possible to go through this process independently, having a knowledgeable real estate professional on your side can be invaluable. They can:

  • Help you understand and navigate the complexities of the process.
  • Assist with paperwork and meeting crucial deadlines.
  • Represent your interests, especially if there are competing claims.


Claiming excess proceeds from a foreclosure can offer a much-needed financial reprieve in a difficult time. Understanding the process and your rights is the first step towards accessing these funds. If you're navigating this situation and believe you might be entitled to excess proceeds, professional guidance can make all the difference.

If you have any questions or think you may have excess proceeds to claim, I'm here to help. Schedule an appointment with me, and let's explore your options together in claiming what you might rightfully be owed.

Schedule an Appointment