Georgia Practice

Georgia Foreclosure Surplus Funds Recovery

If your Georgia home sold at foreclosure for more than you owed, that difference may belong to you. Most people are never told it exists.

What a surplus is

A foreclosure sale is an auction. When the bidding goes past what the lender was owed, the extra money does not stay with the lender. After the debts ahead of you are paid, what is left belongs to the former owner.

These funds do not sit indefinitely. Waiting narrows your options and makes the claim harder to prove, so it is worth finding out where you stand sooner rather than later.

How it works in Georgia

  1. The sale happens

    Georgia is a nonjudicial foreclosure state. The lender’s attorney conducts the sale on the first Tuesday of the month, on the courthouse steps of the county where the property sits. No court judgment is required for the sale itself.

  2. The property sells for more than the debt

    When bidding pushes the price above what was owed, the extra money is the surplus. It does not go to the lender, and it does not go to the county.

  3. The foreclosing attorney holds the money

    The attorney who ran the sale holds the surplus. If more than one party may have a claim, the attorney commonly interpleads the funds into the superior court of that county and asks the court to sort out who gets paid.

  4. It is paid out in a set order

    First the costs of the sale and attorney’s fees, then the secured debt, then junior lienholders in order of their priority — and then the former owner. What reaches you depends on what stood ahead of you.

Who can claim

Most often the former owner. But heirs of an owner who has died, and junior lienholders whose liens were wiped out by the sale, can also have a claim — which is part of why these funds get interplead into court rather than simply mailed out.

Tax-sale excess funds are a separate process, with a different holder and a different deadline. This page does not cover them.

What this costs

Fee arrangements depend on the posture of the matter and are set out in a written agreement before any work begins. We are glad to explain how fees would work in your situation when we speak — ask, and you will get a straight answer.

Find out where you stand

Tell us the county and roughly when the sale happened, and we will look at the records.

By county

Common questions

Important information

Attorney advertising. Responsible attorney: Christian Cruz, Esq., Georgia Bar Number 238836. Office: CRUZ LAW FIRM, 160 W Camino Real, 589, Boca Raton, FL, 33432.

This page is general information about Georgia law, not legal advice. Reading it does not create an attorney-client relationship, and no such relationship is formed until we have a signed written agreement.