What Are Surplus Funds?

Surplus funds (also called excess proceeds or overages) are created when a property is sold at a tax sale for more than the total amount of delinquent taxes, penalties, and fees. The difference between the sale price and the amount owed is legally the property of the former owner - not the county or the tax sale buyer.

For example, if a property with a $15,000 delinquent tax bill sells at auction for $120,000, the $105,000 surplus is held by the county (or the court) until the former owner claims it.

How Long Do I Have To Claim Surplus Funds?

Claim deadlines vary dramatically by state, ranging from 120 days to 10 years. Most states fall within the two to three year range. After the deadline passes, unclaimed surplus funds typically escheats (transfers) to the county or state general fund, thereby eliminating your chance of recovery.

Can Heirs Claim Surplus Funds?

In most states, yes. If the former property owner is deceased, their legal heirs can claim surplus funds. You will typically need to provide a death certificate, proof of heirship (such as a probate record, affidavit of heirship, or letters of administration). Some states require a court proceeding to establish heirship before releasing the funds. Our attorneys complete this process.

What Is A Surplus Fund Assignment?

A surplus funds assignment is a legal contract where the former property owner (the claimant) assigns their right to collect surplus funds to a third party (typically a recovery company) in exchange for a fee or percentage of the funds.

How Much Are Surplus Funds Typically?

Surplus amounts vary enormously depending on property value, tax debt, and auction competition.

Why Didn't I Get A Certified Letter?

The county is required to notify the owners of an upcoming sale. However, it is only required to mail notice to the address on file with the tax collector and tax appraiser. Counties are not required to search for a current address or undertake more expensive means to locate a property owner. That is where Recovered Assets LLC will assist with recovering the excess funds.