Answer: If your property in Chatham County, GA was recently sold at a nonjudicial foreclosure, you may be entitled to surplus funds left over after the sale. We help former homeowners navigate the complex process of recovering these funds from the foreclosing attorney or through the Superior Court of Chatham County.
Losing a home to foreclosure is overwhelming, but you may still have rights to money left over after the sale. In Georgia, foreclosure is a nonjudicial process, meaning the lender can sell the property without a court judgment. If the sale brings in more than what was owed, the surplus is first used to cover sale costs, attorney’s fees, and the secured debt, then distributed to junior lienholders, and finally to the former owner. These funds are held by the foreclosing attorney and are often paid into the Superior Court of Chatham County through an interpleader action. Acting promptly is important, as surplus funds do not remain available indefinitely and waiting can limit your options. This page is for mortgage foreclosure surplus only; tax-sale excess funds are a separate process not covered here.
Why choose us
- Deep experience with Georgia’s nonjudicial foreclosure process and surplus recovery.
- Local knowledge of Chatham County procedures and the Superior Court.
- Clear communication and guidance at every step.
- Convenient contact: (561) 933-4747, 160 W Camino Real, 589, Boca Raton, FL 33432.
- Responsive service during regular business hours.
Services offered
- Review of foreclosure sale records and surplus fund status.
- Communication with the foreclosing attorney holding the surplus.
- Preparation and filing of necessary documents in the Superior Court of Chatham County if required.
- Guidance on the distribution order: costs, attorney’s fees, secured debt, junior lienholders, and former owner.
- Ongoing updates and support throughout the process.
Steps
- Initial Consultation: We review your foreclosure sale and determine if surplus funds may be available.
- Document Gathering: Collect all relevant foreclosure documents, notices, and sale records.
- Contact Foreclosing Attorney: We reach out to the attorney holding the surplus to confirm the amount and status.
- Court Filing (if needed): If the funds have been interplead, we prepare and file the necessary paperwork with the Superior Court of Chatham County.
- Distribution Process: We help ensure the court’s distribution order is followed, including costs, attorney’s fees, secured debt, junior lienholders, and the former owner.
- Final Resolution: Once approved, the court or attorney releases the funds according to the proper order.
Example
Example scenario:
A homeowner in Savannah, Chatham County, GA, loses their home to nonjudicial foreclosure. The property sells on the first Tuesday of the month for $180,000, but the outstanding mortgage and costs total $150,000. The foreclosing attorney holds the $30,000 surplus. After paying sale costs, attorney’s fees, and any junior liens, the remaining funds may be available to the former owner. The attorney interpleads the surplus into the Superior Court of Chatham County, where the court oversees the distribution. This is a general illustration; actual outcomes depend on individual circumstances.
Common pitfalls
- Missing the distinction: Confusing mortgage foreclosure surplus with tax-sale excess funds—these are separate processes with different rules and holders.
- Delaying action: Waiting too long can reduce your options, as surplus funds do not remain available indefinitely.
- Incomplete documentation: Not providing all required foreclosure and sale records can slow or prevent recovery.
- Ignoring junior liens: Junior lienholders may have priority over the former owner for surplus funds.
- Assuming the county holds the funds: In Georgia, the foreclosing attorney—not the county—holds the surplus and often pays it into the Superior Court.
FAQ
Who holds the surplus funds after a foreclosure sale in Chatham County, GA?
In Georgia, the foreclosing attorney—not the county—holds any surplus funds after a nonjudicial foreclosure sale. These funds are often paid into the Superior Court of Chatham County through an interpleader action.
How are surplus funds distributed?
Surplus funds are distributed in this order: costs of the sale and attorney’s fees, the secured debt, junior lienholders by priority, and finally the former owner.
When are foreclosure sales held in Chatham County?
Foreclosure sales in Georgia are held on the first Tuesday of each month, typically on the courthouse steps in Savannah.
Is this the same as recovering tax-sale excess funds?
No. Tax-sale excess funds are a separate process with different rules and are not covered on this page.
How long do I have to claim surplus funds?
There is no set period stated here, but surplus funds do not sit indefinitely. Delaying action can limit your options, so it’s best to act promptly.
Will I automatically receive surplus funds if I was the homeowner?
Not necessarily. Junior lienholders may have priority, and the court will determine the proper distribution order.
Does this page create an attorney-client relationship?
No. This page provides general information only and does not create an attorney-client relationship.
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.
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.