California Surplus Funds Law Library

Key California statutes for foreclosure surplus funds

The following statutes typically apply when surplus funds are created after a mortgage foreclosure sale or trustee sale in California:

• Civil Code § 2924k – describes how trustee’s sale proceeds must be distributed, including what happens to any remaining surplus funds.
• Code of Civil Procedure §§ 701.810–701.830 – address the distribution of sale proceeds and surplus when property is sold to enforce a money judgment.
• Local court rules and orders – in some judicial foreclosures, the court will issue orders directing how surplus funds are to be held and distributed.

SurplusCheck monitors how these laws are applied in real-world foreclosure surplus claims across all 58 California counties. We help property owners and heirs understand where the money is being held and which forms must be filed to request payment.

Key statutes for tax sale excess proceeds

If your property was sold at a tax-defaulted property sale because of unpaid property taxes, the rules for excess proceeds are different from mortgage foreclosure surplus funds. Important statutes include:

• Revenue & Taxation Code § 4674 – governs the distribution of excess proceeds from the sale of tax-defaulted property and describes who can file a claim.
• Revenue & Taxation Code §§ 3691–3707 – cover procedures for tax-defaulted property sales, notices, and redemption rights.
• County tax collector policies – each county (for example Los Angeles County, Sacramento County, San Diego County) has its own forms and deadlines for claiming tax sale surplus funds.

A single missed deadline can cause your claim for California tax sale excess proceeds to be denied. That is why our intake process asks for the sale date, county, and any notices you received.

Deadlines and who can claim surplus funds

Eligibility and deadlines depend on the type of sale and the county holding the funds, but in many California surplus funds cases:

• Former owners and recorded heirs often have the first right to claim surplus funds after a foreclosure or tax sale.
• Junior lienholders (such as second trust deeds or judgment creditors) may also have a claim to California foreclosure surplus funds.
• Counties set specific claim filing deadlines for excess proceeds—sometimes one year, sometimes longer—after which unclaimed money can be transferred to the county or state.

SurplusCheck helps you determine whether you are an entitled party under California surplus funds law and whether your claim is still within the deadline for your county.

Next steps if you think you have surplus funds

If you believe you may be entitled to California foreclosure surplus funds or tax sale excess proceeds, you do not need to quote statutes or complete legal research on your own. Start with a free review instead:

1. Go to our Check Funds page and submit the property address, county, and sale information.
2. We review county records and internally apply the California surplus funds rules that fit your situation.
3. We confirm whether a claim is possible and explain the next steps to pursue the surplus or excess proceeds.

You can also save this California surplus funds law library page as a reference when speaking with your own attorney or contacting the county directly.