Do Foreclosure Surplus Funds Earn Interest While Held by the Court?

When a property is sold at foreclosure and there’s money left over after paying off the debts, those extra funds—called surplus funds or excess proceeds—are typically held by the court or county until claimed.

A common question homeowners have is:

💭 “Does that money earn interest while it’s being held?”

The short answer is: it depends. Let’s explore what actually happens to those funds while they wait for the rightful owner to claim them.

How Surplus Funds Are Held

After a foreclosure sale, any remaining funds are usually deposited into one of the following:

The court registry,
The county treasurer’s escrow account, or
A trust account designated for unclaimed surplus funds.

These funds remain there until someone files a successful claim to receive them. The court holds the money to ensure that all potential claimants—like former homeowners, lienholders, or heirs—have a fair opportunity to come forward.

Do Surplus Funds Earn Interest?

In most cases, surplus funds do not earn interest for the homeowner while being held by the court.

Here’s why:

Court or county accounts are custodial, not investment accounts. The primary goal is to safeguard the funds, not to generate returns.
Even if the funds are placed in an interest-bearing account, the interest typically belongs to the court or state, not the individual claimant.
Some states have exceptions—if funds are held for a long time and accrue interest, homeowners might be entitled to it, but this is rare and often determined by local law.

What Happens to Unclaimed Funds Over Time

If surplus funds are not claimed within the deadline, the court may transfer them to the state’s unclaimed property division. Once that happens, the money remains available to be claimed—but it still generally doesn’t accrue interest for the owner.

This makes it crucial to file your claim as soon as possible—not only to ensure you receive your funds, but also to prevent them from sitting idle (or being absorbed by the state).

Why Acting Quickly Matters

Even though the money doesn’t earn interest, it represents real equity that belongs to you. Every month you wait is time that those funds could be working for you—paying down debt, securing new housing, or rebuilding after foreclosure.

That’s why it’s so important to act fast, file correctly, and recover what’s rightfully yours before deadlines pass.

How Surplus Refund LLC Helps You Recover

Your Funds Quickly

At Surplus Refund LLC, we ensure your surplus funds don’t sit unclaimed any longer than necessary. Our team:

Verifies the existence of surplus funds with the court or county.
Prepares and files all documentation accurately and on time.
Tracks the progress of your claim so you know exactly where it stands.
Accelerates payouts by handling the communication and follow-up with local offices.

Our mission is to get your money back into your hands—safely, efficiently, and without unnecessary delays.

Don’t Let Your Funds Sit Idle

While surplus funds held by the court may not earn interest, their value is too important to leave untouched. If your home was foreclosed, you may be entitled to thousands of dollars waiting to be claimed.