What Are Surplus Funds And Could You Be Owed Money?

Losing a property to foreclosure is never ideal. Whether you’re an individual, a small business owner, or managing a larger portfolio, a foreclosure can feel like a final step. But in many cases, what’s left behind is not just paperwork. It could be money.

Surplus funds are the extra proceeds from a foreclosure sale after all debts tied to the property have been paid. This typically includes the mortgage balance, legal fees, taxes, and any other liens or obligations. If the property sells for more than what was owed, the difference is known as surplus funds. That remaining amount may be available to the former owner of record.

For example, if a property had $90,000 in total debt and it sold for $110,000, the $20,000 left over could be claimed by the prior owner, depending on the situation.

While many people associate surplus funds with residential foreclosures, they can also apply to properties held by businesses, estates, or investors. Depending on the case, other parties like lienholders or creditors may have a claim, but many former owners are still entitled to a significant portion of what’s left. The reason most people never claim these funds is simple. The notice is usually sent to the last known address, which is often the foreclosed property itself. That means the letter never gets read, the deadline passes, and the funds go unclaimed. In other cases, the information may be buried in court records or published through legal channels that aren’t routinely checked.

At Overage Allies, we specialize in locating and recovering surplus funds for clients who may not even realize this money is available to them. We handle the research, the paperwork, and all communication with the appropriate agencies. When a case requires legal support, we work with attorneys who are experienced in surplus fund recovery so our clients don’t have to search for representation on their own. Legal coordination is part of the service we provide to ensure the process moves forward smoothly and correctly.

We work on a contingency basis, and our compensation is based on a legally agreed upon amount. There are no upfront costs, and we only get paid when you do. Our goal is to make the process straightforward, efficient, and worthwhile. If you’ve been through a foreclosure, now may be the right time to take another look. Surplus funds don’t stay available forever. Let’s review your case and see if there’s money waiting to be claimed. Reach out today to get started.