The terms surplus funds and excess proceeds are often used interchangeably in the context of foreclosure, but they can have slightly different meanings depending on the state or legal context. In Indiana, understanding the distinction is key to knowing what you’re entitled to and how to claim it.
Surplus funds refer to the amount of money left over after a property is sold at a sheriff’s auction and all debts—such as the mortgage balance, liens, and court costs—are paid off. This leftover amount legally belongs to the former homeowner or their heirs.
Excess proceeds usually describe the same leftover funds, but the term is sometimes more commonly used in tax foreclosure cases, while “surplus funds” is more common in mortgage foreclosure cases. Some counties and legal notices may use either term.
The legal process around foreclosure varies from case to case and county to county. One court might refer to your refund as a surplus, while another uses the term excess proceeds. What matters most is identifying that funds remain and filing a proper petition to claim them.
At National Equity Agency, we help Indiana residents and heirs recover their surplus funds or excess proceeds quickly, legally, and without upfront costs. We handle all the paperwork and court filings, and you only pay if we’re successful.
Check Your Surplus Eligibility Now →