FAQ

100 U.S. dollar banknote lot

FAQ

What are surplus funds?
Surplus funds, also referred to as "overage" or "excess funds," are generated when a property goes through foreclosure and is sold at auction. This can occur due to a mortgage, association, or tax-deed foreclosure. Often, the property sells for more than the amount owed, creating a surplus. These funds belong to the original homeowner or their heirs.

Why are there funds owed to me?
You are entitled to these funds because the property you owned has been sold through a foreclosure or tax sale. If you're an heir to that property, you're also eligible to claim the surplus funds from the sale.

Where do these funds come from?
The funds we're referring to are held in the county court registry. They come from a foreclosure auction, whether for a mortgage, tax-deed, or association foreclosure. When the property is sold for more than the foreclosure amount, the difference is called surplus funds, and they belong to the original homeowner or their heirs.

I’m not the owner of record; why can I still claim the funds?
If you're not the current property owner, it's possible you're an heir to the original owner. When someone passes away and their property goes into foreclosure, the rightful heirs are entitled to claim the surplus funds. If the person passed away without a will, there are specific rules determining who the heirs are. Your Pinnacle Partners specialist will guide you through the process to ensure you're recognized as the rightful claimant.

Can my mortgage lender claim my surplus funds or take action against me if I claim them?
The short answer is no! If the mortgage lender wasn’t named in the foreclosure case, they have no claim on the surplus funds. Even if the lender was the plaintiff, they’ve already been paid in full from the sale proceeds. If they weren’t named in the case, their lien remains on the property and doesn’t entitle them to the surplus. You’re free to proceed with Pinnacle Partners in claiming these funds.

How much time do I have to collect these funds?
If you don’t act within a year, the surplus funds from your foreclosure will be sent to the state treasury. Although you can still claim them from there, the process becomes much more complicated and time-consuming. Additionally, there’s a risk of fraudulent claims being filed on your behalf if you delay, as others may attempt to claim the funds. We’ve dealt with fraud cases before and have successfully ensured that the rightful owners receive their funds.

Do I need to pay anything upfront to claim the funds?
No! Pinnacle Partners never asks for upfront payments. We cover all costs associated with processing your claim. Our fees are only paid when we successfully recover funds for you, and everything will be clearly outlined in your agreement.

Can I claim these funds myself?
While it's possible to claim the funds independently, a motion usually needs to be filed with the court, which can be expensive. Hiring an attorney can cost a lot, especially if they charge an hourly rate. Some attorneys may work on contingency, but their fees could be as high as 30% or more.
With Pinnacle Partners, all attorney fees and expenses are covered by us, and we only charge if we successfully recover funds on your behalf. If we don't recover anything, you won’t owe us anything—our services are completely free if you're not paid.

What happens if I don't want the funds?
If you choose not to claim the funds, they will eventually be sent to the state treasury, where they remain claimable indefinitely. These funds do not "escheat" to the state like other types of unclaimed property.
If you’re not interested in keeping the money, we can help direct the funds to a charity of your choice, or partner with a charity that supports homeowners facing foreclosure.

Can I still claim the funds if I am on Social Security, Medicaid, or other fixed income?
Yes, you can still claim the funds. If you’re concerned about your income-based benefits being affected, discuss it with your Pinnacle Partners recovery specialist. If necessary, we'll have an attorney work on your behalf to ensure your benefits remain unaffected.

My home is being sold due to an HOA foreclosure, but I have a mortgage. Am I still entitled to the surplus funds?
Yes, in most cases, the mortgage lien takes priority over an HOA lien, meaning the mortgage company isn’t entitled to the surplus funds. However, there are specific details to consider, and the legal team at Pinnacle Partners is fully equipped to guide you through the process and determine your entitlement.

Can other liens or mortgages on my property claim the surplus funds?
It’s possible, but not necessarily. The answer depends on several factors, including whether the lienholders are named in the foreclosure suit. In many cases, if other liens weren’t included in the foreclosure process, they won't be entitled to the surplus. The legal team at Pinnacle Partners can assess your situation and provide a clear understanding of your claim.