California Surplus Funds Guide: Laws, Eligibility & How to Claim in 2026
This guide explains what surplus funds (excess proceeds) are under California law, who can claim them, key deadlines, and how to avoid common mistakes when claiming surplus funds in California in 2026.
California Laws on Surplus Funds and Excess Proceeds
In California, surplus funds from foreclosure sales are governed mainly by the Civil Code. Under California Civil Code §§ 2924j and 2924k, when a property is sold at a trustee sale (non-judicial foreclosure) and the sale price exceeds the amount required to satisfy the debt, costs, and fees, the trustee must hold the excess and disburse it according to statute. Eligible parties—typically the former owner or junior lienholders—may file a claim for these funds. The trustee or the county (depending on the type of sale) holds the money until valid claims are processed.
For tax sales, excess proceeds are handled under the Revenue and Taxation Code. When property is sold for unpaid property taxes, any amount above what is owed to the county may be claimable by the former owner or other entitled parties. Each of California's 58 counties has its own process and forms; deadlines are strict and missing them can mean losing your right to the funds.
Trustee sale vs. tax sale
Trustee sale (non-judicial foreclosure): The most common type of foreclosure in California. Surplus is held by the trustee; in some cases funds are transferred to the county. Tax sale: Conducted by the county for unpaid property taxes. Excess proceeds are held by the county tax collector or treasurer. In both cases, you must file a claim with the correct office before the deadline.
Who Can Claim Surplus Funds in California?
- Former owner. The person who held title when the property was sold.
- Heirs. If the owner is deceased, heirs may be entitled with proper documentation (e.g., death certificate, probate or small-estate affidavit).
- Junior lienholders. Parties with a recorded lien that was subordinate to the foreclosing lien may have a claim, depending on the type of sale and county rules.
- Other parties with a valid legal interest as defined by the applicable statute and county procedures.
Eligibility can depend on the type of sale (trustee sale vs. tax sale) and the county. We review your situation and advise whether you may qualify.
Deadlines for Claiming Surplus Funds
California law and county rules set strict deadlines for filing a claim. For trustee sales, the trustee typically gives notice and a deadline; for tax sales, the county sets the period during which excess proceeds can be claimed. Missing the deadline usually means you lose your right to the funds. We file claims on time and follow up so your claim is processed. If you are unsure whether a deadline has passed, submit your information for a free review—we can often determine whether funds are still available.
Common Myths About Surplus Funds in California
- “I lost my home, so I can’t get any money back.” Not true. If the sale brought more than what was owed, the excess may be yours to claim.
- “The bank keeps everything.” The bank (or foreclosing lender) is paid only what is owed. Surplus goes to entitled parties who file a valid claim.
- “I have to hire a lawyer.” You can file on your own, but the process is paperwork-heavy and deadline-driven. Many people use a professional service like SurplusCheck (we are not lawyers; we assist with the claim process).
- “It’s too late.” Deadlines vary. Let us check—our free search can tell you if funds may still be available.
Next Steps
If you had a foreclosure or tax sale in California, start with a free search. We’ll tell you whether surplus funds may be available and guide you through the process. No recovery, no fee.