Auction
Surplus Funds
Money left from a tax sale after the taxes, interest, and costs are paid. Also called excess proceeds.
Surplus funds belong first to lienholders and then to the former owner, who generally must file a claim within a deadline. Unclaimed funds may go to the county or state.
The U.S. Supreme Court held in Tyler v. Hennepin County (2023) that a government cannot keep surplus value beyond the debt owed, which led several states to change their laws.
How it works by state
- California
- Parties of interest can claim excess proceeds within one year after the tax deed is recorded.
- Florida
- The Clerk holds the surplus and mails a notice; lienholders and the former owner have 120 days from that notice to file a claim.
- Michigan
- After Rafaeli v. Oakland County (2020), former owners can claim remaining proceeds by filing the required notice by July 1 after the foreclosure.
General information, reviewed 2026-10-12. Not legal advice. Rules change and each county publishes its own sale terms; confirm with the county before bidding.