After a foreclosure or tax sale, any money left over after paying off the mortgage, interest, penalties, and other liens is known as surplus funds. The first step is to check if surplus funds are available for you. We locate the trustee’s sale file or county tax records to confirm whether the sale produced surplus funds, and if you are eligible to claim them.

Once we confirm that surplus funds exist, we’ll verify your eligibility to claim them. In most cases, the former property owner is entitled to the surplus funds. To claim the funds, we’ll gather essential documents, such as your ID, recorded deed, or any paperwork proving your right to the funds.

Surplus fund recovery can involve complex paperwork, and we handle all of that for you. Whether it's completing county forms, submitting documents, or filing petitions in court, our team manages the entire process. This ensures that your claim is properly filed, within the required timeframes, and in full compliance with California’s foreclosure and tax sale laws.

Once all necessary paperwork is prepared, we file your claim with the appropriate trustee or county office. If there are any competing claims or legal complications, we may need to file a court petition (CIV-170) to resolve disputes and ensure your claim is processed correctly.

Once your claim is submitted, the trustee or court will review it and determine whether you are entitled to the surplus funds. The review process may take some time, especially if multiple parties are involved or competing claims arise. However, our team will keep you updated and ensure that everything is moving forward smoothly.

If your claim is approved, the trustee or county office will release the surplus funds to you. Depending on the circumstances, the funds may be disbursed directly to you, or there may be additional steps involved, such as court approval or clearance. Our team will guide you through this final stage to ensure you receive your funds quickly and securely.

Surplus funds are held by the trustee or county for a limited time, and if unclaimed, they may be transferred to the state as unclaimed property. That’s why it’s important to act quickly! Our team helps you navigate all deadlines and ensures your claim is submitted as soon as possible, protecting your rights to the funds.

Surplus funds recovery is governed by specific legal frameworks to ensure fairness and transparency. For instance, under California Civil Code §2945, there are strict rules for foreclosure consultants and surplus funds recovery services, which protect consumers from fraud and ensure that any recovery services are in compliance with state laws.

Additionally, Revenue & Taxation Code §4676 applies to tax-sale overages, providing guidelines on how counties handle and distribute any surplus funds from tax sales.

• Eligibility: In most cases, the former property owner is entitled to surplus funds. However, eligibility can be affected by other liens, heirs, or competing claims.
• Time Limits: Surplus funds must be claimed within a specified time frame, or they may be transferred to the state as unclaimed property.
• Legal Protections: California laws, such as Civil Code § 2945.4, ensure that surplus funds recovery services adhere to strict guidelines to prevent fraudulent activities.

For more detailed legal information, get in touch with us today. 

Our team is ready to provide all the information you need about California foreclosure laws, tax sale overages, and the legal protections available to you.