Frequently asked questions

When a property is sold at foreclosure auction for more than the amount owed on the mortgage, the difference is called surplus funds (sometimes called excess proceeds). By law, this money typically belongs to the former owner, after any junior lienholders are paid. The court or county holds these funds, but they don't come to you automatically — someone has to file a claim.

Most people don't know. Notices about surplus funds are sometimes sent to the last address on file — which is often the foreclosed property you no longer live at, so the notice never reaches you. We check the public records for you, free of charge, to see whether your foreclosure generated a surplus that's still unclaimed.

There is no upfront cost. ListingDraft's initial research is free. The attorney who files your claim works on a contingency basis — they receive a percentage of the funds recovered, disclosed in writing before you sign anything. If no funds are recovered, you owe nothing.

Typical recovery timelines range from a few weeks to several months, depending on your state's court schedule, whether other parties contest the claim, and how quickly the court releases funds. Your attorney will give you a realistic estimate based on your specific case.

No. ListingDraft helps connect former homeowners with attorneys who handle surplus-funds claims in their state. Each attorney is independently licensed and responsible for the legal representation. We do not provide legal advice.

Most states have a deadline for claiming surplus funds — anywhere from one to several years after the foreclosure. If you wait too long, the funds may revert to the state's unclaimed-property office or be redirected. We'll check the deadline for your state as part of the initial review.

It happens. Junior lienholders, homeowners' associations, and other creditors sometimes have valid claims that take priority over the former owner's share. Your attorney evaluates these competing claims and represents your interest in court if disputes arise.

Receiving surplus funds doesn't affect your credit. There may be tax implications depending on your situation — typically, the funds are not taxable income, but consult a tax professional for advice specific to your circumstances.

The property address that was foreclosed, your name, the approximate date of the foreclosure, and a way to contact you. That's enough for us to start the public-records research. We never ask for Social Security numbers, bank details, or any payment upfront.

Yes. We don't sell your information or share it outside the recovery process. See our Privacy Policy for full details on what we collect and how we use it.

It depends on your state. Some states allow claims for several years after the foreclosure. Use the claim form to give us the details — we'll let you know whether the deadline has passed.

Yes, in most states. Surviving spouses, children, or other heirs can typically claim surplus funds that were owed to a deceased family member. The process is more complex and may require probate documentation. Your attorney will walk you through what's needed.