Surplus Money After Foreclosure
If you lost your home to foreclosure, there may be money in the Court with your name on it.
What is Surplus Money?
When a house is sold through foreclosure, it is sold to the highest bidder at public auction. If it sells for more than you owe the foreclosing bank, there may be money left over after the bank is paid. This surplus money belongs to you, the homeowner, with some exceptions.
Within 5 days of the sale, the referee (i.e., the Court appointed attorney who sold the property) must submit the remaining money to the Court. However, no one will send this money to you without your asking. You must act, or you will receive nothing.
How do I get the money?
If you want to get your surplus money, you will have to start a Surplus Money Proceeding. This proceeding is actually a part of the foreclosure case.
The aim of the proceeding is to determine who has the right to the money. There are some creditors who may have competing claims to the surplus. It can take anytime from a few months to several months, depending on the complexity of the case.