An experienced NC foreclosure attorney can help you discover whether you have surplus funds waiting after your home was sold at foreclosure. Many homeowners in North Carolina don’t realize that when a property sells for more than the total debt owed, the leftover money, known as surplus funds, legally belongs to them. Unfortunately, unless you take the right steps to locate and claim these funds, that money could end up in someone else’s hands or be turned over to the state.
Knowing how to check for surplus funds and what to do next can make all the difference in recovering what’s yours.
What Are Surplus Funds? | NC Foreclosure Attorney
When a home goes through foreclosure, it’s typically auctioned to the highest bidder. The sale proceeds are first used to pay off the mortgage, legal fees, and any additional liens, such as unpaid property taxes or second loans. If the winning bid exceeds the total amount owed, the remaining balance is considered surplus funds or excess proceeds.
For example, if your home sold for $275,000 but your total debt was $240,000, the $35,000 difference is surplus money that belongs to you, the former homeowner. However, these funds don’t automatically get mailed to you. They are usually deposited with the clerk of court in the county where the foreclosure took place, and you must file a claim to have them released.
How to Check If Surplus Funds Exist
If you think your property sold for more than what was owed, there are several ways to find out whether surplus funds are available:
-
Contact the County Clerk of Court:
Start with the county where your foreclosure was filed. Ask the clerk’s office if surplus funds were deposited following your foreclosure sale. Provide as much detail as possible, such as the case number, property address, and sale date. -
Review the Foreclosure File:
You can look up your case in the public court records. The foreclosure trustee’s final report will often show how much the property sold for and whether any surplus remains. -
Consult the Trustee or Substitute Trustee:
The trustee who handled your foreclosure sale must file a report of sale with the court. Sometimes they can confirm whether surplus funds were generated and how much was turned over to the clerk. -
Hire an Attorney to Investigate for You:
A qualified NC foreclosure attorney can review court filings, contact the clerk, and confirm if surplus funds exist. This approach saves time and ensures the search is done correctly, especially if you’re unsure where to start or which documents to request.
What to Do If Surplus Funds Are Found
If surplus funds are available, the next step is filing a petition for disbursement or motion for surplus recovery with the court. You’ll need to provide proof of your ownership and entitlement to the funds, such as the foreclosure case number, sale details, and identification.
Sometimes, other creditors or lienholders may try to claim the funds. For instance, a judgment creditor or second mortgage holder might argue they should receive part, or all, of the money before you do. Having a skilled attorney ensures your claim is properly supported and your rights are protected in these situations.
Why Work with an NC Foreclosure Attorney
Claiming surplus funds can seem straightforward, but the process often involves complex paperwork, strict deadlines, and potential court hearings. A trusted NC foreclosure attorney can guide you through every step, making sure your claim is filed accurately and on time.
At Eldreth Law Firm, we help North Carolina homeowners:
-
Determine whether surplus funds exist and how much may be available.
-
Prepare and file all required court documents to ensure proper processing.
-
Defend your claim if another party challenges your entitlement to the money.
-
Follow up with the court to make sure your funds are released as quickly as possible.
Having professional legal guidance helps you avoid delays, paperwork errors, and the risk of losing your funds to competing claims.
Take Action Before It’s Too Late
If your home has been sold at foreclosure, you could be entitled to money you didn’t know was waiting for you. But time matters. If you don’t act promptly, surplus funds could be claimed by others or transferred to the North Carolina State Treasurer’s Office as unclaimed property—making the recovery process much more difficult.
Don’t leave money on the table. Contact Eldreth Law Firm today to speak with an experienced NC foreclosure attorney. We’ll help you confirm whether surplus funds exist and guide you through every step of recovering what’s rightfully yours.
Call or schedule your consultation online to get started today.
