Surplus, Overage, and Excess Funds Recovery

Understanding Surplus and Excess Funds

Surplus funds—also known as overages or excess funds—are the money left over after a foreclosure sale when the property sells for more than the total owed on the mortgage and any other liens. These funds do not belong to the lender or other lienholders; by law, they are the rightful property of the former homeowner.

Key Points on Excess Funds

• Surplus funds are a legitimate resource for homeowners facing foreclosure, though caution is required because some dishonest companies attempt to exploit this situation.
• The process for claiming surplus funds can vary significantly by state. Generally, homeowners are notified by the court or foreclosure trustee and given a strictly limited timeframe to make a claim.
• If surplus funds are not claimed promptly, they may be turned over to the state’s unclaimed property division—making timely action crucial.
• In recent years, some states have streamlined notifications and claim forms, while others have imposed new verification steps to protect homeowners and reduce fraud. Staying informed about the latest local requirements is essential in 2026.
• Because the steps and paperwork can be complicated, consulting a knowledgeable surplus recovery professional or foreclosure attorney can make a real difference in recovering the full amount owed.

The purpose of surplus fund recovery is simple: to give former homeowners the financial relief and fresh start they deserve after enduring foreclosure. Equity Edge Surplus Recovery Group uses industry expertise to help clients understand their rights, avoid pitfalls, and claim what belongs to them as efficiently as possible.