1. Identifying the surplus funds: Once a property is sold at a foreclosure auction, the proceeds from the sale are used to pay off the outstanding mortgage balance, foreclosure costs, and any liens on the property. If the sale proceeds exceed the total amount due, the surplus funds are deposited with the court or the public trustee, depending on the state.

2. Filing a claim: Parties who have an interest in the surplus funds, including the former property owner and any lienholders or judgment creditors, can file a claim with the court or public trustee. The claim must be filed within a certain time frame, typically within 180 days of the sale.

3. Verification of the claim: The court or public trustee will verify the validity of the claim and determine who is entitled to receive the surplus funds. This may involve a hearing or review of documentation such as deeds, liens, judgments, and other legal papers in which we handle for you with our attorney’s.

 4 Disbursement of funds: Once the court or public trustee determines who is entitled to the surplus funds, the funds will be distributed accordingly. The former property owner may receive the surplus funds if there are no other claims, or the funds may be distributed among multiple parties based on the court’s decision.

5. Completing the process: Once the surplus funds are distributed, the process is considered complete. The former property owner may need to file tax returns for the year of the sale and report the surplus funds as income.