Hazel Karen Nicolas Gonzales

When a property is sold at a foreclosure auction and the sale price exceeds the debt owed, the extra money—called surplus funds or excess proceeds—rightfully belongs to the previous owner or other qualified claimants. But sometimes, multiple parties step forward claiming rights to the same funds. That’s where the court steps in with something called an interpleader action. What Is an Interpleader Action? An interpleader action is a legal process used when there are competing claims to the...

Imagine finding out that your foreclosure surplus funds—money that rightfully belongs to you—were accidentally sent to someone else. It’s a nightmare scenario, but it happens more often than most homeowners realize. Surplus funds can sometimes be misfiled, misdirected, or even claimed by the wrong person, especially when multiple parties are involved or when errors occur in the court or county office. The good news? In most cases, it can be fixed — if you act quickly. How Surplus Funds End Up...

Filing a surplus funds claim after a foreclosure is a big step toward recovering money that rightfully belongs to you. But many homeowners don’t realize that filing the claim is only half the process. The most overlooked step in surplus recovery — and one of the most important — is following up with the court . Without proper follow-up, even valid claims can sit unresolved for months or get lost in the system entirely. Why Following Up Matters After a foreclosure sale, surplus funds are...