Mortgage Foreclosure Surplus
Mortgage Foreclosure Surplus
When a foreclosure sale generates more than what was owed on the mortgage, the remaining balance may belong to the former homeowner or another rightful party. HSP helps determine whether such surplus exists and what it takes to pursue it.
When a property is sold through a mortgage foreclosure, the sale price sometimes exceeds the amount owed to the lender, along with fees and costs. That remaining balance is known as mortgage foreclosure surplus.
These funds may be held by the foreclosing trustee, attorney, clerk of court, or another designated party, depending on the jurisdiction, and may be owed to the former homeowner or another party with a legal interest.
Former homeowners are often unaware that surplus funds exist, may have relocated, or may find the claims process difficult to navigate without assistance.
Claiming surplus funds typically involves identifying the responsible holder of funds, understanding jurisdiction-specific procedures, preparing documentation, and submitting a claim within applicable deadlines.
HSP researches foreclosure sale records, identifies potential surplus matters, and helps former homeowners, heirs, and estate representatives understand whether a claim may exist and what documentation is required.
Important distinction
Tax sale excess funds and mortgage foreclosure surplus are different categories of funds, arising from different processes and governed by different rules. A property may be involved in one, both, or neither. HSP evaluates each matter separately to determine which category, if any, applies.