HomeNews & ArticlesFrequently Asked Questions

Excess proceeds are funds remaining after the sale of a foreclosed property when the amount obtained from the sale exceeds the total amount owed on the mortgage, including any associated fees, taxes, and liens. These remaining funds, also known as surplus funds, may be claimed by the former property owner or other entitled parties, such as lienholders, under specific legal conditions. 

Funds become unclaimed when the rightful owner is unaware of their existence, forgets about them, or cannot be located by the holder of the funds. This can happen due to changes in address, lack of communication, death without a will, or failure to notify a bank or institution of a new address. Once deemed unclaimed, the funds are turned over to the state or relevant authority as required by law. 

Unclaimed funds refer to any financial assets that have been left inactive or untouched for a certain period of time, such as excess proceeds, forgotten bank accounts, uncashed checks, refunds, insurance payouts, or dividends. These funds typically end up in the custody of government agencies or financial institutions until the rightful owner claims them. 

Excess proceeds are funds remaining after the sale of a foreclosed property when the amount obtained from the sale exceeds the total amount owed on the mortgage, including any associated fees, taxes, and liens. These remaining funds, also known as surplus funds, may be claimed by the former property owner or other entitled parties, such as lienholders, under specific legal conditions. 

Yes, the time limits for claiming excess auction funds generally apply to tax foreclosure auctions. After a tax foreclosure auction, any surplus funds remaining after the payment of debts (like unpaid taxes and auction costs) are typically returned to the former property owner or lienholders.

However, the specific time frame for claiming these funds can vary by state or locality. Some jurisdictions may have strict deadlines, often ranging from a few months to a few years. It’s essential to consult local laws or the auctioning authority to understand the exact rules and deadlines that apply to tax foreclosure auctions in your area. If in doubt, seeking legal advice can be beneficial. 

After a tax foreclosure auction, you can find out if you have unclaimed funds by following these steps:

1. Contact the county treasurer’s office: Start by reaching out to the county treasurer’s office where the tax foreclosure auction took place. They will have information about any unclaimed funds from the auction.
2. Check the unclaimed property website: Many states have an unclaimed property website where you can search for any funds that may belong to you. This could include funds from tax foreclosure auctions.
3. Look for notifications: Sometimes, notifications about unclaimed funds are sent via mail or published in local newspapers. Check these sources to see if there are any notices related to the auction.
4. Provide necessary documentation: If you find that there are unclaimed funds in your name, you may need to provide documentation to prove your identity and claim the funds. This could include a government-issued ID, proof of address, and any other required documents.
5. Act promptly: Unclaimed funds may have a time limit for claiming them, so it’s important to act promptly once you discover that you are entitled to them.

By following these steps, you can determine if you have unclaimed funds after a tax foreclosure auction and take the necessary steps to claim them. 

To prove eligibility for surplus funds (also known as excess proceeds or overages) after a tax foreclosure auction, the following documents are generally required:

1. Proof of Identity: A government-issued photo ID (e.g., driver’s license, passport) to confirm that you are the rightful claimant.
2. Proof of Ownership: Documentation showing that you were the legal owner of the property before the foreclosure, such as the deed or title to the property. This proves your right to claim any excess funds from the sale.
3. Foreclosure Sale Documentation: A copy of the Notice of Sale or the Certificate of Sale from the foreclosure auction. This document shows that the property was sold at auction and generated surplus funds.
4. Proof of Foreclosure: Documentation showing the foreclosure process was completed, typically a foreclosure judgment or final order from the court. This is important to confirm that the auction resulted from a foreclosure.
5. Surplus Funds Claim Form: Most counties or states have a specific Surplus Funds Claim Form that must be completed. This form typically requires your contact information, proof of ownership, and any other details about your claim.
6. Lienholder or Creditor Documentation (if applicable): If there were any liens or judgments against the property, lienholders may also be entitled to claim a portion of the surplus funds. You would need to provide evidence that any other liens have been satisfied or are no longer valid.
7. Proof of Address: You may need to submit utility bills or other documents showing you lived at the foreclosed property if required by the county or state.
8. Affidavit of Claimant (if required): Some jurisdictions require a notarized affidavit stating your claim to the surplus funds, confirming you are not representing anyone else, and acknowledging your right to receive the funds.
9. Death Certificate (if applicable): If the previous owner is deceased, heirs or beneficiaries may need to provide a death certificate and probate documents to claim the surplus funds.
10. Bankruptcy Documentation (if applicable): If the property owner declared bankruptcy, additional court documents may be required to prove eligibility for the surplus funds.

These documents are typically submitted to the court, the trustee, or the local county office handling the distribution of surplus funds. Each jurisdiction may have slightly different requirements, so it’s important to check with the specific county or state where the property was foreclosed.  

1. Former Property Owner:

Primary Eligibility: The former owner of the property before the foreclosure is usually the first and most entitled person to claim the surplus funds, as these proceeds are what remains after the payment of the tax debt, fees, and foreclosure costs.

Conditions: The former owner must provide proof of ownership (such as a deed) and identity to claim the funds.

2. Lienholders/Creditors:

Secondary Eligibility: Any party that had a valid lien on the property, such as a mortgage lender, Homeowners Association (HOA), or contractor, may be entitled to some or all of the surplus funds. These claims typically take precedence over the former owner’s claim.

Priority of Claims: Lienholders with higher priority (e.g., the first mortgage lender) are generally paid before other creditors with lower priority.

3. Heirs or Beneficiaries:

If the Former Owner is Deceased: The heirs or beneficiaries of a deceased former owner may be eligible to claim the excess proceeds. In such cases, they may need to provide a death certificate, proof of heirship, and sometimes probate documentation.

Probate Process: If the estate has not gone through probate, the funds may be held until the rightful heir is determined through court proceedings.

4. Bankruptcy Trustee:

If the Former Owner Filed for Bankruptcy: If the property owner was in bankruptcy at the time of foreclosure, the bankruptcy trustee may claim the surplus funds on behalf of the bankruptcy estate to pay creditors.

5. Government Agencies:

Unpaid Taxes or Liens: Government agencies with unpaid taxes or liens on the property may also have a right to claim the excess proceeds before the funds go to the former owner or other claimants.

6. Assignees or Third Parties:

Assigned Rights to Claim: Sometimes, a third party may purchase the rights to the excess proceeds from the former owner, lienholder, or heir. The assignee would then be eligible to claim the funds, provided they can prove the assignment was legally executed.

7. Other Creditors (if applicable):

Unsecured Creditors: After secured lienholders and taxes are paid, unsecured creditors may also claim a portion of the surplus, though this is less common and typically only happens if there are no other higher-priority claims.

Key Considerations:

Timely Claims: Many jurisdictions require eligible claimants to file a claim within a certain period after the auction. Failure to do so may result in forfeiture of the right to claim the funds.

Court or County Regulations: Local courts or counties may hold the funds for a specific period before declaring them unclaimed, at which point the money might be transferred to the state or forfeited.

It’s essential for potential claimants to check with the specific jurisdiction where the auction occurred to ensure they meet all requirements for filing a claim for excess proceeds.

Once your claim is approved, you will typically receive your funds through one of the following methods:

• Check: The most common method is a check mailed to the address you provided on the claim form.
• Direct Deposit: Some agencies may offer the option to receive funds via direct deposit to your bank account.
• Other Methods: In rare cases, funds may be disbursed through other means, such as a money order or wire transfer, depending on the agency’s procedures and your preference.

You will be notified by the agency once your claim has been approved, and they will provide information on how the funds will be disbursed to you. 

Filing a claim for excess proceeds directly with the relevant government agency is usually free of charge. However, if you choose to use a third-party service or attorney to assist with the claim, they may charge a fee or take a percentage of the recovered funds as compensation. Always verify any fees before agreeing to use a third-party service. 

What is the timeline for the claim process?
The timeline for the claim process can vary widely depending on the jurisdiction, the complexity of the claim, and the agency handling it. Generally, it can take anywhere from a few weeks to several months to process a claim.

• Initial Review: The agency will first review the claim for completeness and eligibility, which may take 2 to 4 weeks.
• Verification: The agency will verify the documents and information provided, which can take an additional 4 to 8 weeks or more, depending on the volume of claims and the specific circumstances of the case.
• Approval and Disbursement: Once the claim is verified, it will be approved, and the funds will be disbursed. This final step may take an additional 2 to 4 weeks. 

To file a claim for excess proceeds, follow these steps:

1. Search for Available Funds: Start by searching the county or state government websites where the property was located to see if there are any available excess proceeds. Each jurisdiction usually has an online database or contact number to help you determine if there are unclaimed funds in your name.
2. Obtain the Claim Form: Once you confirm there are funds available, obtain the necessary claim form from the relevant agency, such as the county treasurer, tax collector, or clerk’s office. These forms are typically available for download on their websites.
3. Prepare Required Documentation: Gather all required documentation to support your claim. This may include proof of identity (e.g., a driver’s license or passport), proof of ownership or interest in the property (e.g., deed, mortgage statement), and any other documents proving entitlement (e.g., court orders, lienholder documents).
4. Complete the Claim Form: Fill out the claim form accurately and completely. Be sure to provide all requested information, including your contact details, details of the property, and evidence supporting your claim.
5. Submit the Claim: Submit the completed claim form along with the required documentation to the agency holding the excess proceeds. This can often be done by mail, online, or in person, depending on the agency’s procedures.
6. Follow Up: Keep track of your claim status by following up with the agency. This can help ensure that there are no issues or missing information that could delay the process. 

What happens if I don’t claim my funds within the specified timeframe?
If you do not claim your funds within the specified timeframe, the consequences depend on the type of funds and the governing laws:

• Unclaimed Property: If the funds are classified as unclaimed property and you miss any initial deadlines set by the holding institution, the funds will be escheated to the state. However, you can still file a claim with the state’s unclaimed property office to recover the funds, as most states hold unclaimed property indefinitely.
• Excess Proceeds from Foreclosure: If you fail to claim excess proceeds from a foreclosure sale within the deadline specified by local laws, you may lose your right to claim these funds. In some cases, unclaimed excess proceeds may be transferred to a general fund, county treasury, or state unclaimed property division. After this transfer, the process to recover the funds may become more complex, and in certain jurisdictions, the funds may eventually be forfeited.

It’s essential to act promptly to avoid losing your rights to claim any unclaimed funds or excess proceeds. 

Yes, there can be time limits or deadlines for claiming unclaimed funds or excess proceeds, depending on the jurisdiction and the type of funds:

• Unclaimed Property: In most states, there is no expiration date for claiming unclaimed property once it has been turned over to the state. The state will hold these funds indefinitely until the rightful owner or their heirs claim them.
• Excess Proceeds from Foreclosure: For excess proceeds from foreclosure, there may be a specific deadline to file a claim, often ranging from a few months to a few years after the foreclosure sale. These deadlines are determined by state or local laws and vary widely, so it is crucial to check the specific regulations in the jurisdiction where the foreclosure occurred. 

The laws governing unclaimed funds and excess proceeds vary by state and jurisdiction but are generally designed to protect the rights of the original owners and ensure that these funds are returned to their rightful owners. Key regulations include:

1. State Unclaimed Property Laws: Most states in the U.S. have specific unclaimed property laws that require entities like banks, insurance companies, and government agencies to report and remit unclaimed funds to the state after a certain period of inactivity (usually 3-5 years). These laws are often based on the Uniform Unclaimed Property Act, which serves as a model for states to adopt or modify.
2. Foreclosure and Excess Proceeds Laws: Local county or state statutes govern the handling of excess proceeds from foreclosure sales. These laws determine how long funds are held, who is eligible to claim them, and the process for doing so. They also define the priority of claims, such as whether lienholders or property owners are entitled to the funds first.
3. Escheatment Laws: These laws dictate that unclaimed funds are eventually “escheated,” or turned over to the state, after a specified dormancy period. The state then holds these funds until the rightful owner claims them, usually with no expiration date for certain types of property.
4. Statutes of Limitations and Court Orders: Some jurisdictions may have specific statutes of limitations for filing claims, especially regarding excess proceeds from foreclosure sales. Court orders may also play a role in determining entitlement, especially if multiple parties claim the same funds. 

Getting started with NAAFR is simple:

1. Contact NAAFR: Reach out to NAAFR through their website (NAAFR.org), phone, or email to express your interest in recovering unclaimed funds or excess proceeds. You can fill out a contact form or call their office directly to speak with a representative.
2. Initial Consultation: NAAFR will provide a free initial consultation to discuss your situation, determine if you have potential claims, and explain how their process works. During this consultation, you can ask questions and learn more about their services.
3. Provide Information: If you decide to proceed, you will need to provide NAAFR with the necessary information and documents to start the claim process. This may include proof of identity, ownership, or any other relevant documentation.
4. Sign an Agreement: You will sign a service agreement outlining the terms, fees, and conditions of NAAFR’s assistance. This agreement will clarify the contingency fee structure and any other pertinent details.
5. Start the Recovery Process: Once the agreement is signed, NAAFR will begin the process of locating, verifying, and claiming any unclaimed funds or excess proceeds that belong to you. They will handle all aspects of the claim and keep you informed throughout the process. 

NAAFR typically operates on a contingency fee basis, meaning there are no upfront costs for their services. Instead, NAAFR charges a percentage of the recovered funds only if the claim is successful. The exact percentage may vary depending on the complexity and size of the claim but generally ranges between 10% and 30% of the recovered amount.

• No Upfront Fees: NAAFR does not require any payment until the funds are successfully recovered.
• Contingency Fee: A percentage of the total amount recovered is charged as the fee, ensuring that you only pay if you receive the funds.

NAAFR is transparent about its fee structure and will provide a clear explanation of any costs or fees before starting the recovery process. 

The National Association of Abandoned Funds Recovery (NAAFR) specializes in helping individuals recover excess proceeds from foreclosures and other types of unclaimed funds. NAAFR offers a streamlined process and expert assistance to ensure that claimants receive the funds they are legally entitled to. Here’s how NAAFR helps:

1. Research and Identification: NAAFR conducts extensive research to identify potential unclaimed funds or excess proceeds that belong to you. This includes searching through databases, government records, and other sources to locate funds that may be due to you.
2. Claim Preparation: NAAFR prepares all the necessary documentation and forms required to file a claim for unclaimed funds or excess proceeds. This includes gathering proof of identity, ownership, and entitlement, as well as completing and submitting the claim forms on your behalf.
3. Navigating Legal Requirements: NAAFR helps navigate the complex legal and regulatory requirements associated with claiming funds. This includes understanding specific state and local laws, deadlines, and procedures to ensure your claim is processed efficiently.
4. Communication and Follow-Up: NAAFR acts as an intermediary between you and the holding agency or government entity, handling all communications, follow-ups, and any additional requests for information to ensure a smooth and timely claim process.
5. Expedited Processing: By leveraging their expertise and established relationships with various agencies, NAAFR can often expedite the claim process, reducing the time it takes for you to receive your funds. 

If you do not have all the required documentation, there are several steps you can take to try to complete your claim:

1. Gather Substitute Documents: Look for alternative documents that may serve as acceptable substitutes. For example, if you do not have the original deed, a tax record, mortgage statement, or another official document showing your interest in the property might be accepted.
2. Request Copies from Relevant Authorities: Contact the agencies or institutions that may have copies of the documents you need. For example, request copies of a deed from the county recorder’s office or a death certificate from the vital records office. Some documents can also be ordered online.
3. Submit an Affidavit or Declaration: If certain documents are unavailable, some agencies may accept a sworn affidavit or declaration explaining the situation and attesting to the facts of your claim. You may need to have the affidavit notarized.
4. Explain Your Situation to the Agency: Communicate with the agency handling your claim and explain why you cannot provide certain documents. They may offer alternative solutions or guidance on how to proceed with your claim.
5. Seek Professional Assistance: If you are having difficulty obtaining the necessary documentation, consider working with a professional service, such as NAAFR, that specializes in recovering unclaimed funds. They can help you navigate the process and identify alternative ways to substantiate your claim. 

To update your contact information during the claims process, follow these steps:

1. Contact the Agency: Reach out to the agency handling your claim by phone, email, or through their website to inform them of the change. Be prepared to provide your claim reference number and any identification details to verify your identity.
2. Submit a Written Request: Some agencies may require a written request to update contact information. Check their guidelines and, if needed, send a formal letter or complete an online form providing your updated contact details.
3. Provide Proof of Identity: Be ready to provide proof of your new address or contact details. This may include a copy of a government-issued ID, a utility bill, or other documents verifying the change.
4. Confirm the Update: Follow up with the agency to ensure they have received and processed your request to update your contact information. Keep a record of all communications for future reference. 

If your claim is denied, it is essential to understand the reason for the denial and determine the next steps:

1. Review the Denial Notice: Carefully read the denial notice or letter sent by the agency handling your claim. It should provide specific reasons for the denial, such as insufficient documentation, missing information, or a lack of eligibility.
2. Contact the Agency: Reach out to the agency to request clarification or additional details about the denial. Ask if there is any way to correct the issue or provide further documentation to support your claim.
3. Provide Additional Information: If the denial is due to missing or incomplete information, gather any additional documentation required and resubmit your claim. Make sure all documents are clear, accurate, and up to date.
4. Appeal the Decision: If you believe your claim was wrongly denied, you may have the option to appeal the decision. Follow the agency’s appeals process, which may involve submitting a formal appeal letter, providing further evidence, or attending a hearing.
5. Seek Legal Assistance: In complex cases or if the claim involves a significant amount of money, consider consulting with an attorney who specializes in unclaimed funds or foreclosure law to help you understand your rights and pursue further action. 

Yes, you can pay for NAAFR’s services after receiving your funds. Since NAAFR works on a contingency fee basis, their fee is deducted from the total amount recovered. You do not have to pay anything out of pocket; NAAFR will take their agreed-upon percentage only once the funds have been successfully recovered and disbursed to you. This ensures that you only pay if your claim is successful. 

NAAFR typically takes a percentage of the recovered amount as a fee for their services. This percentage generally ranges from 10% to 30% of the total funds recovered, depending on the complexity and size of the claim. The exact percentage will be clearly outlined in the service agreement before you begin the recovery process, so you are fully aware of the costs involved. 

No, there are no upfront fees when using the services of the National Association of Abandoned Funds Recovery (NAAFR). NAAFR operates on a contingency fee basis, which means you do not have to pay anything until your claim is successfully recovered. This approach ensures that there is no financial risk for you to start the recovery process. 

NAAFR’s typical hours of operation are Monday through Friday, from 9:00 AM to 5:00 PM (Central Time). For after-hours inquiries, you can leave a voicemail or send an email, and a representative will respond to you as soon as possible during the next business day. 

The best way to contact NAAFR for support is by calling their customer service number directly, as it allows you to speak to a representative immediately for urgent issues or detailed inquiries. Alternatively, you can use the live chat feature on their website for quick questions or email them for non-urgent support that requires detailed responses. 

You can get in touch with the National Association of Abandoned Funds Recovery (NAAFR) through several methods:

1. Website: Visit their official website at NAAFR.org to access information, fill out a contact form, or use their live chat feature for immediate assistance.
2. Email: You can email NAAFR at their official email address provided on their website for inquiries or to request more information.
3. Phone: Call NAAFR’s customer service number, which is also listed on their website, to speak directly with a representative.
4. Mail: Send written correspondence to the mailing address provided on their website for formal requests or documentation.