Foreclosure Surplus Funds

In some states, your lender can sue you to collect a deficiency if your unpaid balance was more than the foreclosure sale price. But, if the unpaid balance is less than the foreclosure sale price, any surplus funds belong to you – not the lender.

When a mortgage holder sells real estate at a foreclosure auction, the selling price will determine whether the borrower gets any proceeds from the sale. If the borrower owes more than the sale price, in some states the bank can pursue the borrower in court for the deficiency.

If the property sells for more than the borrower owes, that borrower could be entitled to the surplus funds. After the mortgage holder’s expenses and any subordinate lienholders are paid, the borrower can apply to either the foreclosure trustee or the court to receive the funds leftover from the sale. The borrower will likely need to complete a form, provide proof of prior ownership, and attend a hearing.

At Zen Fund Recovery, we are backed by a team of dedicated surplus fund experts who will do everything (even cover any fees for attorneys, filing, notaries, mailing, etc) to find surplus funds you may be entitled to.