Are You Owed Money After Foreclosure? Here’s What You Need to Know

When homeowners face foreclosure, most assume they are left with nothing after the bank takes the property. However, what many don’t realize is that they might actually be owed money after the foreclosure sale. This is known as foreclosure overages or excess proceeds, and it’s an opportunity that goes unclaimed far too often.

What Are Foreclosure Overages?

Foreclosure overages occur when a foreclosed home sells for more than the amount owed on the mortgage. For example, if a homeowner owes $150,000 on their mortgage but the property sells at auction for $200,000, the extra $50,000 doesn’t belong to the bank—it belongs to the former homeowner.

Where Does the Money Go?

Once the foreclosure sale is finalized, the funds are first used to pay off the outstanding mortgage balance, along with any legal fees, penalties, or liens. Whatever remains after those debts are settled is considered excess proceeds, and by law, it belongs to the previous homeowner. These funds are typically held by the county or court handling the foreclosure, but if unclaimed, they may eventually be transferred to the state’s unclaimed property division.

Why Don’t Homeowners Know About This?

Many homeowners never hear about foreclosure overages because lenders and government agencies are not required to actively notify them. If a homeowner has moved or doesn’t check court records, they may never realize they are entitled to money. Additionally, some states have complex processes that make it difficult to claim these funds without legal knowledge.

How to Claim Your Money

If you’ve lost a home to foreclosure, it’s crucial to check whether you have unclaimed funds. Here’s how:

Check Public Records – Look up foreclosure records in the county where your home was sold.
Contact the Court or County Treasurer – The local court or treasurer’s office may be holding the funds.
Work with a Foreclosure Recovery Specialist – A professional can help navigate the claims process, ensuring you receive the money you’re owed before deadlines expire.

Beware of Scams

Unfortunately, because foreclosure overages are not widely known, scam artists target former homeowners with false promises of helping them recover funds. Never pay upfront fees to claim your money—legitimate professionals work on a contingency basis, meaning they only get paid after you successfully recover your overage funds.

We Can Help

At The National Overages Finders Alliance (NOFA), we specialize in helping homeowners recover excess proceeds from foreclosure sales. If you think you may be owed money, contact us today at 866-800-6632 or visit overages.us to learn more.

Don’t let your money go unclaimed—find out today if you have excess funds waiting for you!