Key Terms Explained
Definitions of terms you’ll see when claiming surplus funds in California.
- Surplus funds / Excess proceeds
- The money left over after a foreclosure or tax sale when the sale price exceeds the amount owed (debt, costs, fees). This excess is held by the county or trustee and can be claimed by entitled parties.
- Foreclosure sale
- A sale of property to satisfy a defaulted loan. In California, this is often a trustee sale (non-judicial). If the sale brings more than what is owed, surplus may be available.
- Tax sale / Tax auction
- When a county sells property for unpaid property taxes. Excess proceeds from the sale may be claimable by the former owner or others under state and county rules.
- County treasurer / Tax collector
- County offices that often hold surplus or excess proceeds and process claims. Each county has its own forms, deadlines, and contact information.
- Trustee sale
- A non-judicial foreclosure sale conducted by a trustee under a deed of trust. Common in California. Surplus from the sale may be held by the trustee or transferred to the county.
- Junior lienholder
- A party with a lien on the property that was lower in priority than the lien that was foreclosed. In some cases, junior lienholders may have a claim to surplus funds after the former owner.