What Are Surplus Funds?
When a property is sold at a foreclosure or tax auction for more than what was owed, the extra money is often called surplus funds or excess proceeds. In California, this money may be claimable by the former owner or other entitled parties.
How surplus funds arise
Under California law, when a property is sold at a foreclosure sale or tax auction for more than the amount owed (debt, costs, and fees), the remaining amount is surplus funds or excess proceeds. The county or trustee holds this money until a valid claim is filed. Each of California's 58 counties has its own process, forms, and deadlines. Missing a deadline can mean losing your right to claim.
Who can claim surplus funds?
Typically: the former owner, heirs if the owner has passed away, junior lienholders, or other parties with a qualifying interest under the county's rules. Eligibility depends on the type of sale (trustee sale, judicial foreclosure, tax sale) and the county. We review your situation and explain whether you may qualify.
Where is the money held?
Surplus or excess proceeds are usually held by the county treasurer, tax collector, or the trustee that conducted the sale. We work with the correct office for your county and type of sale to file the claim and follow up until funds are released.