Learning center

Glossary

Plain-language definitions for the terms you’ll run into. No law degree required.

Surplus funds: Money left over after a foreclosure sale pays off everything legally owed — the sale costs, the mortgage or tax debt, and other valid liens. Also called overage or excess proceeds.
Overage / excess proceeds: Other names for surplus funds. Different counties use different words for the same thing.
Tax sale: A public auction where a property is sold because property taxes went unpaid. Any surplus typically ends up with a county tax office.
Mortgage foreclosure sale (sheriff’s sale): A court-ordered auction where a property is sold because the mortgage went unpaid. In many states the surplus is held by the court and claimed through a motion filed with the judge.
Lien: A legal claim against a property for money owed — for example, a second mortgage, unpaid HOA dues, or a court judgment. Lienholders are paid from sale proceeds before any surplus goes to the former owner, and some may claim the surplus themselves.
Former owner of record: The person or entity listed as the property’s owner in county records at the time of the sale. Usually the first person entitled to claim surplus.
Holding office: The county office or court currently holding the surplus money — for example, a tax commissioner, county auditor, or clerk of court. This is who you contact about a claim.
Claim: The formal request you file with the holding office or court to receive surplus funds. Usually involves a form, proof of identity, and proof of ownership.
Motion (for surplus funds): In states where the court holds the surplus, the written request you file asking the judge to release the money to you. Less intimidating than it sounds — it’s essentially a formal letter to the court following that court’s format.
Escheat / unclaimed property: If surplus goes unclaimed long enough, many states move it to a state unclaimed-property program. It may still be claimable there, but through a different office and process.
Possible public-record match: Our term for a search result: a name in a public record looks similar to the name you entered. It is not proof that money is held for you or that you are entitled to anything — that’s decided by the holding office after identity verification.
Identity verification: The step where you prove to the holding office that you are the person named in the record — typically with photo ID, proof of Social Security number, and ownership documents.
Contingency fee: A fee arrangement where a service provider is paid a percentage of the amount actually recovered — and nothing if nothing is recovered. Common in recovery services; any legitimate offer puts the percentage in writing.
HUD-approved housing counselor: A free, nonprofit counselor certified by the U.S. Department of Housing and Urban Development to help homeowners facing foreclosure. Find one through HUD’s online counselor directory.