Surplus Funds and Excess Proceeds Money Machine



State Information & Notes:We will update this list from time to time as we find more info on states.Alabama – you can get lists online from some Counties, and, here’s the odd part – the lists in many of these are held by the probate department. Yes, that is odd. You have 3 years to claim tax sale overages - Further more (Sec. 40-10-28) says that if such tax sale proceeds, overages, or excess funds are not requested within (3) three years after the sale of the property such money shall thereafter be treated as part of the general fund of the county. Do not send us a file where the tax sale happened over 2 years and 6 months ago. For tax overages, in Alabama, it is often called an ‘excess bids’ listAlaska – courts are broken down by boroughs. You need to call/email around, as there have been lists found for tax overages both on the county(borough) level, and – believe it or not – the State level. The tax overage list can be called the ‘tax foreclosure outcry auction results’.Arizona – in some counties, the opening bid and the winning bid for mortgage sales are given in a report generated by Remember that the opening bid is not always the amount being foreclosed upon, though it usually is. This is a good ‘back door’ method for finding overages, if you are unsuccessful in getting a list from the County directly. The great thing with the report is that it gives you the information necessary to find the deed and the property debt, because it gives date of sale and document/instrument numbers for deed of trust. Good starting place.Arkansas – Commissioner of State Lands can provide a state wide list. Will be called an ‘excess proceeds’ or ‘excess proceeds turnback’ report.California – very difficult to get online records without spending an extraordinary amount of money. Easy to get a tax sale list from the tax collector for the County, called excess proceeds. There is a one year claim period for tax overages. So we will only take researched files from tax sales if the tax sale occurred 1 day to 6 months ago. If the file is over 6 months old, don’t turn it in. Claims are made within the year’s time and reviewed at the end of the year. There is some disagreement as to when the one year mark starts. It can be viewed as one year from date of tax sale, or one year from date of deed transfer. Because some Counties move extremely slowly, using the deed transfer date can add 3 to 6 months to the potential claim period. Mortgage overages are first held by the foreclosing entity, who can disburse the funds without the court’s intervention. Then, the foreclosing entity deposits surplus funds with the County Clerk – add the following to your request letter/email for best results: Specifically,?California Civil Code Section 2924j?addresses the surplus funds issue: (a) Unless an interpleader action has been filed, within 30 days of the execution of the trustee's deed resulting from a sale in which there are proceeds remaining after payment of the amounts required by paragraphs (1) and (2) of subdivision (a) of Section 2924k, the trustee shall send written notice to all persons with recorded interests in the real property as of the date immediately prior to the trustee's sale who would be entitled to notice pursuant to subdivisions (b) and (c) of Section 2924b. The notice shall be sent by first-class mail in the manner provided in paragraph (1) of subdivision (c) of Section 2924b and inform each entitled person of each of the following:(1) That there has been a trustee's sale of the described real property.(2) That the noticed person may have a claim to all or a portion of the sale proceeds remaining after payment of the amounts required by paragraphs (1) and (2) of subdivision (a) of Section 2924k.(3) The noticed person may contact the trustee at the address provided in the notice to pursue any potential claim.(4) That before the trustee can act, the noticed person may be required to present proof that the person holds the beneficial interest in the obligation and the security interest therefor. In the case of a promissory note secured by a deed of trust, proof that the person holds the beneficial interest may include the original promissory note and assignment of beneficial interests related thereto. The noticed person shall also submit a written claim to the trustee, executed under penalty of perjury, stating the following:(A) The amount of the claim to the date of trustee's sale.(B) An itemized statement of the principal, interest, and other charges.(C) That claims must be received by the trustee at the address stated in the notice no later than 30 days after the date the trustee sends notice to the potential claimant.(b) The trustee shall exercise due diligence to determine the priority of the written claims received by the trustee to the trustee's sale surplus proceeds from those persons to whom notice was sent pursuant to subdivision (a). In the event there is no dispute as to the priority of the written claims submitted to the trustee, proceeds shall be paid within 30 days after the conclusion of the notice period. If the trustee has failed to determine the priority of written claims within 90 days following the 30-day notice period, then within 10 days thereafter the trustee shall deposit the funds with the clerk of the court pursuant to subdivision (c) or file an interpleader action pursuant to subdivision (e). Nothing in this section shall preclude any person from pursuing other remedies or claims as to surplus proceeds.(c) If, after due diligence, the trustee is unable to determine the priority of the written claims received by the trustee to the trustee's sale surplus of multiple persons or if the trustee determines there is a conflict between potential claimants, the trustee may file a declaration of the unresolved claims and deposit with the clerk of the superior court of the county in which the sale occurred, that portion of the sales proceeds that cannot be distributed, less any fees charged by the clerk pursuant to this subdivision. The declaration shall specify the date of the trustee's sale, a description of the property, the names and addresses of all persons sent notice pursuant to subdivision (a), a statement that the trustee exercised due diligence pursuant to subdivision (b), that the trustee provided written notice as required by subdivisions (a)and (d) and the amount of the sales proceeds deposited by the trustee with the court. Further, the trustee shall submit a copy of the trustee's sales guarantee and any information relevant to the identity, location, and priority of the potential claimants with the court and shall file proof of service of the notice required by subdivision (d) on all persons described in subdivision (a). The clerk shall deposit the amount with the county treasurer or, if a bank account has been established for moneys held in trust under paragraph (2) of subdivision (a) of Section 77009 of the Government Code, in that account, subject to order of the court upon the application of any interested party. The clerk may charge a reasonable fee for the performance of activities pursuant to this subdivision equal to the fee for filing an interpleader action pursuant to Chapter 5.8 (commencing with Section 70600) of Title 8 of the Government Code. Upon deposit of that portion of the sale proceeds that cannot be distributed by due diligence, the trustee shall be discharged of further responsibility for the disbursement of sale proceeds. A deposit with the clerk of the court pursuant to this subdivision may be either for the total proceeds of the trustee's sale, less any fees charged by the clerk, if a conflict or conflicts exist with respect to the total proceeds, or that portion that cannot be distributed after due diligence, less any fees charged by the clerk.(d) Before the trustee deposits the funds with the clerk of the court pursuant to subdivision (c), the trustee shall send written notice by first-class mail, postage prepaid, to all persons described in subdivision (a) informing them that the trustee intends to deposit the funds with the clerk of the court and that a claim for the funds must be filed with the court within 30 days from the date of the notice, providing the address of the court in which the funds were deposited, and a telephone number for obtaining further information. Within 90 days after deposit with the clerk, the court shall consider all claims filed at least 15 days before the date on which the hearing is scheduled by the court, the clerk shall serve written notice of the hearing by first-class mail on all claimants identified in the trustee's declaration at the addresses specified therein. Where the amount of the deposit is twenty-five thousand dollars ($25,000) or less, a proceeding pursuant to this section is a limited civil case. The court shall distribute the deposited funds to any and all claimants entitled thereto.(e) Nothing in this section restricts the ability of a trustee to file an interpleader action in order to resolve a dispute about the proceeds of a trustee's sale. Once an interpleader action has been filed, thereafter the provisions of this section do not apply.(f) "Due diligence," for the purposes of this section means that the trustee researched the written claims submitted or other evidence of conflicts and determined that a conflict of priorities exists between two or more claimants which the trustee is unable to resolve.(g) To the extent required by the Unclaimed Property Law, a trustee in possession of surplus proceeds not required to be deposited with the court pursuant to subdivision (b) shall comply with the Unclaimed Property Law (Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure).(h) The trustee, beneficiary, or counsel to the trustee or beneficiary, is not liable for providing to any person who is entitled to notice pursuant to this section, information set forth in, or a copy of, subdivision (h) of Section 2945.3.Colorado – the County trustee has a foreclosure sale list for mortgage foreclosures. If that list shows a ‘deficiency’ then there is no overage. If the bid amount matches indebtedness, there is no overage. If the party purchasing the property is a bank, it is generally the bank that is foreclosing, and they have ‘hit their own bid’ to take the property back and sell it on the open market. If for some reason you see an overage amount, but the buyer at the sale is the same as the entity foreclosing – same bank – then there will be no overage. The office of the clerk and recorder, public trustee division, ask for ‘unclaimed excess funds list’ for mortgage overages.Connecticut – The tax collector will deposit tax overages with the clerk of the court after the sale. Once the monies from tax sales are deposited with the clerk of the court, there is a 90 day window to make a claim – however, statues say we have 3 years. Don’t send anything to us older than 2.5 years. The tax collector has some leeway to determine when they deposit the monies with the clerk of the court – so you may want to attempt to get a list form the tax collector first. The pertinent statute, dealing with this deposit, is CT general statutes 12-157(i). You will want to also contact the court for a mortgage overage list. County holds funds for 90 days in general fund account and then transfers the monies to the prothonotary of the county to hold for claims. Contact prothonotary for list.Delaware – Project rightful owner is an online program that allows access to sheriff sale information including the overages being held. It is the superior court of Delaware that has online access links. There is no time limit for tax sale overage claims. Instead of Counties, the state is divided into regional court houses. As of this writing – January 2014, there are no finder limits or laws in placeFlorida – Unless you work this using the traditional system – going into the courthouse and doing research there in person – or you have our Florida Remote system, we will not take deals from you here. *Note – this is a State where the attorneys will not break out funds in their trust account. As a result, unless you can cash third party checks using our custodian/durable power of attorney with your bank, you will not be able to work Florida using our system on your own.Georgia – Counties often give out tax sale overage lists very easily. Getting a mortgage overage list is harder, as they are not used to giving this out, and therefore they can easily feign lack of knowledge. Tax overage list is called ‘excess funds list’.Hawaii – You can get lists from the state administrative office of the court. They are called unclaimed warrants. The county tax collector will also often be able to provide a tax overage list. Do not send any tax overage files to us that are older than 6 months.Idaho – Counties have excess proceeds lists. May want to mention Statute code – 31-808(2) in your request for the list. Keep files submitted from tax sales to under 2.5 years. The treasurer usually handles tax sale overages.Illinois – Counties hold the tax overages. It is difficult to get any list from Cook County. Indiana – on tax sales, you have three years to claim. Do not send us in a file where the tax sale happened more than 2 years and 6 months ago. You can ask for the ‘registry and trust accounts with balances’ from the circuit court. The sheriff holds mortgage foreclosures and the list is called the overbid list.Iowa - In the past, we have had success with asking for escrow account list. With mortgage overages, that is where the funds are depositedKansas – one year to claim tax overages. Do not send us anything older than 6 months after tax sale. The County Sheriff handles mortgage foreclosures and they will have a list, or will be able to tell you who to contact at the County Courthouse, if money is transferred.KentuckyLouisiana – This is broken down by Parish, not County. Each County can be slightly different. You will have to contact and ‘ask around’.Maine – one year to claim tax overages. Do not send us anything older than 6 months after tax sale.Maryland – you can ask for the tax sale report or tax sale results report. Maryland is odd: Baltimore County and Baltimore City have separate tax sales. Don’t send tax sale overage files in that are older than 2.5 years from the foreclosure – 3 years to claim.MassachusettsMichigan – The sheriff handles mortgage foreclosures. The Sheriff has a list of ‘special trust accounts’ that may also be referred to as a 76800 account. We do not believe that Michigan has tax overages. Go after mortgage overages and unclaimed estate funds. Michigan Counties keep any tax overages, ostensibly for ‘community development’Minnesota – we do not believe that you can work tax overages here. You can, however, work mortgage overages.Mississippi – Do not send us in any tax overage files where the sale occurred over 1.5 years ago.Missouri – the circuit court has information, including tax sales, online, available to the public. We had a list turned in where it showed online public information where you could click through case after case and simply see which ones had overages in them. We have 3 years to claim tax sale overages – don’t send in any case where the tax sale occurred over 2.5 years ago.MontanaNebraskaNevada – tax overages are called excess proceeds. One year from sale to make claim – so we won’t take anything over 6 months after date of sale for tax overages. The County will give you the list.New Hampshire – we believe that we have 3 years to make claim on tax sale overages. So we can’t take any file over 2.5 years old from date of tax sale.New Jersey – This is an interesting State. We have seen County lists that give you the judgment amount being collected by the foreclosing bank (mortgage foreclosures), and the amount paid, effectively giving you the initial overage amount. In addition, the Administrative Office of the Court, located in Trenton NJ, will provide what they call the ‘SODA’ list – that list gives you access to State wide overages, but you will have to break them out and research by County. Some cities or counties will also have what is called a ‘non municipal lien master file list’ that is a list of mortgage overages.New Mexico – for tax overages, we have one year to claim. So don’t send anything in to us that is older than 6 months from the tax sale.New York – mortgage overages, and access to online research – deeds, mortgages – are fairly easy to get. Outlying counties are easier to get than, for instance, the boroughs. The county treasurer will often hold the list. You may want to ask for ‘all current court held and trust funds, pursuant to Section 184 of the State Finance Law. In some Counties, you can go online to the County or borough and request a list by clicking on a ‘foia’ or ‘foil’ request button.North Carolina – Unless you are working this using the Traditional surplus funds system, going into the court personally for research, or using our NC specific system, we will not take files from you from this State. North DakotaOhio – We are going to launch a state specific program for Ohio, so we will not be taking files from here, guys. Oklahoma – there’s only a year to claim tax overages. So don’t send in any files over 6 months old from tax sale. You should be able to get a results of sale, from tax sales. This results list will give amounts that were being foreclosed on, and the amount of sale, so overages can be determined.Oregon – We have no interest in pursuing any cases in this State and will not accept files from you. If you purchased the traditional surplus funds ebook prior to 4/30/16, and sent cases in prior to 4/30/2016, we will continue to work those cases.Pennsylvania – you can get a tax overage list from either the County or the tax department. You will have to ask around to get a mortgage overage list. But, in general, the Sheriff for the county holds the foreclosure sales for mortgages so they usually hold the mortgage overage list. We have 5 years to make a claim on tax overages. Don’t send in any file over 4.5 years old.Rhode Island – in tax sales, you have up to 5 years to claim the overage – so please do not send in any file that is over 4.5 years old.South Carolina – Up to 5 years to claim after the sale for tax, some counties will give you a tax overage list very easily. The issue is whether or not you can gain access to online information to research the deed and mortgage debt, which is not always available. In tax sales, the list may be called a ‘bidder overage’. In addition, the statutes read that only the ex owner can claim, but read that more closely – only the owner of anyone with a claim – so priority still goes to debt holders first. They may also call it their unclaimed funds register.South Dakota – we have one year to claim tax overages. Don’t send in any files where the tax sale happened over 6 months ago. the county auditor can give you a list of tax sale resultsTennessee – Many of the Counties require that you are a local resident of Tennessee to get a list. Of course, if you would like to enlist the help of a friend or family member to get the list who lives in the State, and then work it, that would be fine. As we have had very few cases turned in for Tennessee, we are happy to accept files from here. However, we have 1 year to claim tax overages – don’t send us anything in that is over 6 months old from tax sale. The tax overage list can be had, by request, from the Chancery court.Texas – very difficult to get a mortgage overage list. However, the Counties generally have no problem giving you a tax sale overage list. Many of the ‘tax sales’ are actually being sold at auction because the owner did not pay their school taxes. Word of caution – Like any other State, do not try to get the funds out in your name. Use our method, even if you are attempting to claim surplus by buying a judgment from a judgment holder who has the priority claim to the funds. Texas is the only State we know of that applies finder fee limits on judgment holders who bought the judgment in order to collect on it from surplus. The way to get around this is to treat the judgment holder as the claimant – they are in fact first in line and as such are the claimant – and sign them up as that. Don’t try to buy their judgment and work it. In most counties, the County Tax Commissioner or Treasurer can provide you with a tax overage list. A reference that you may want to include in your request for the list, is that these monies are generated and referenced in property code 76, subchapter c.Utah – the only list we have seen for tax overages have been ones that are called result of tax sale lists, from the County. The list is sparse – parcel id#, opening bid, final sales price. It would require more research to work such a list – the tax id or parcel id # (also called pid) can be entered into the County tax collector’s site to find the address of the property. The year of the tax sale would also give you a starting point to research deeds and then find when the deed that was transferred by the tax sale. The owner just previous to that transfer would be the one entitled, if of course there was not additional debt owed that had a priority claim. You would have to research debt against the property prior to the tax sale and judgments using TLO (or let us do that). We have one year to claim tax overages – so don’t send in any file where the tax sale happened over 6 months ago.VermontVirginia – for tax overages, usually the circuit court holds the funds. May be called a ‘liabilities index’. May also be called ‘chancery accounts’. We have one year to claim tax sale overages – so don’t send in any file where the sale happened over 6 months ago.Washington State – We have no interest in working this State and will Not accept any files from here.Washington DC – We have no interest in working this, and will not accept files from here.West Virginia – for tax sales, we have 1 year to claim. Don’t send in any files over 6 months old from date of tax sale.Wisconsin – we don’t believe that Wisconsin returns tax overages. You can work mortgage overages, however.Wyoming ................
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