Surplus Funds Glossary

Plain-language definitions for 55+ terms used in surplus funds recovery, tax sales, and foreclosures. This glossary is for informational purposes only and does not constitute legal advice.

A

Affidavit of Heirship: A sworn legal document that identifies the heirs of a deceased person. Sometimes required when heirs file surplus funds claims without going through formal probate.
Assessed Value: The value assigned to a property by the county assessor for the purpose of calculating property taxes. Not the same as market value or the price a property sells for at auction.

C

Claim Window: The deadline by which a former property owner must file a claim for surplus funds. After this period, unclaimed funds may be transferred to the county general fund or state unclaimed property division. Learn more →
Claimant: The person or entity filing a claim for surplus funds. This is usually the former property owner, their heir, or an authorized representative.
Contingency Fee: A fee structure where the recovery professional is only paid if the surplus funds are successfully recovered. The fee is calculated as a percentage of the recovered amount. This is the standard arrangement in surplus funds recovery. Learn more →
Clerk of Court: A county official responsible for maintaining court records. In many states, the clerk of court holds surplus funds from judicial foreclosure sales and processes claims from former property owners.
County Treasurer: A county official who manages public funds. In some jurisdictions, the county treasurer conducts tax sales, collects surplus proceeds, and processes claims.
Chain of Title: The sequence of historical transfers of title to a property, from the current owner back through previous owners. Important for surplus funds claims involving older sales or inherited properties.
CRM: Customer Relationship Management software. In surplus funds recovery, a CRM is used to manage leads, track outreach attempts, organize cases, and monitor the claim process from start to finish. Learn more →
Cold Calling: The practice of contacting potential clients (former property owners) by phone without prior arrangement. A common outreach method in surplus funds recovery. Learn more →

D

DNC Scrubbing: The process of comparing phone numbers against the National Do Not Call Registry before making outreach calls. Required by federal law when contacting individuals for commercial purposes.
Deed: A legal document that proves ownership of real property. When filing a surplus funds claim, claimants typically need to provide a copy of the deed showing their name as the former owner.
Due Diligence: The research and investigation performed before entering into a transaction. In surplus funds recovery, due diligence includes verifying the surplus amount, confirming ownership, and checking claim deadlines.

E

Excess Proceeds: Another term for surplus funds, most commonly used in the context of judicial foreclosure sales. Refers to the leftover money after the mortgage debt and sale costs are satisfied. Learn more →
Estate: The total assets and liabilities of a deceased person. Surplus funds owed to a deceased former property owner become part of their estate and can be claimed by the personal representative or heirs.
Escheatment: The legal process by which unclaimed property or funds are transferred to the state government after a specified period. Surplus funds that go unclaimed past the deadline may escheat to the state or county.
E-Signature: An electronic signature used to sign documents digitally. Recovery professionals use e-signature tools to get fee agreements signed quickly without mailing physical documents. Learn more →

F

Foreclosure: The legal process by which a lender takes possession of a property after the borrower defaults on mortgage payments. Properties are typically sold at auction, and any excess proceeds go to the former owner.
Fee Agreement: A contract between a recovery professional and a former property owner that outlines the percentage fee the professional will charge for recovering surplus funds. Typically signed before claim filing begins. Learn more →
Fair Market Value: The estimated price a property would sell for on the open market between a willing buyer and seller. Tax sale prices may be significantly higher or lower than fair market value.

H

Heir: A person entitled to inherit property or assets from a deceased individual. Heirs can typically claim surplus funds owed to a deceased former property owner by providing proof of relationship and death certificate.

I

Interpleader: A legal action filed when multiple parties claim the same surplus funds. The county or court deposits the money with the court and asks the judge to determine who is entitled to the funds.

J

Judicial Foreclosure: A foreclosure process that goes through the court system. The lender files a lawsuit, and the court oversees the sale. Used in states like Florida, New York, and Ohio.

L

Lienholder: A person or entity that holds a lien (a legal claim) against a property. Lienholders may have a right to claim surplus funds depending on the priority of their lien and state law.
Lis Pendens: A public notice filed with the county recorder indicating that a lawsuit involving a specific property is pending. Alerts potential buyers that the property's title may be affected.

M

Mortgage Overages: Surplus funds generated when a foreclosed property sells at auction for more than the remaining mortgage balance and sale costs. The excess belongs to the former homeowner.
Minimum Bid: The lowest acceptable bid at a tax sale or foreclosure auction. Usually set at the amount of unpaid taxes, liens, and sale costs. Any amount bid above this creates surplus.

N

Non-Judicial Foreclosure: A foreclosure process that does not require court involvement. The lender follows a statutory process including notice requirements and holds a trustee sale. Used in states like Texas, California, and Georgia.
Notarized: A document that has been officially certified by a notary public. Many surplus funds claims require notarized forms to verify the identity of the claimant.

O

Open Records Request: A formal request to a government agency for access to public records. Used by recovery professionals to obtain surplus funds lists from counties that do not publish them online. Learn more →
Outreach Letter: A letter mailed to a former property owner informing them that surplus funds may be available from their property sale. Typically includes the property address, approximate amount, and how to get help claiming it. Learn more →
Overbid: A bid at a tax sale or foreclosure auction that exceeds the minimum required amount. The excess amount above the minimum bid (taxes owed, mortgage debt, etc.) creates the surplus funds. Learn more →

P

Parcel Number: A unique identification number assigned to a piece of real property by the county assessor. Used to look up property records, tax information, and surplus funds tied to a specific property.
Probate: The legal process of administering a deceased person's estate. When a former property owner has passed away, heirs may need to go through probate to claim surplus funds on behalf of the estate. Learn more →
Personal Representative: The person appointed by the court to manage a deceased person's estate during probate. Also called an executor or administrator. They can file surplus funds claims on behalf of the estate.
Power of Attorney: A legal document authorizing one person to act on behalf of another. In surplus funds cases, a claimant may grant power of attorney to a recovery professional or attorney to file claims on their behalf.
Pipeline: A visual representation of where each case stands in the recovery process. A typical surplus funds pipeline includes stages like Lead, Contacted, Agreement Signed, Claim Filed, and Paid. Learn more →

Q

Quitclaim Deed: A deed that transfers whatever interest the grantor has in a property without making any warranties about the title. Sometimes used in surplus funds cases involving multiple heirs or ownership disputes.

R

Right of Redemption: The legal right of a former property owner to reclaim their property after a tax sale or foreclosure by paying the outstanding debt plus interest and fees within a specified time period.
Redemption Period: The window of time during which a former property owner can reclaim their property by paying the full amount owed. Varies by state, ranging from a few months to several years.
Recovery Professional: An individual or company that helps former property owners locate and claim surplus funds in exchange for a percentage-based fee. Also called a recovery agent or recovery specialist.
Recovery Agent: Another term for a recovery professional. A person who assists former property owners in filing claims for surplus funds from tax sales or foreclosures.

S

Surplus Funds: Money remaining after a tax sale or foreclosure auction when the property sells for more than the amount owed in taxes, liens, and fees. These funds typically belong to the former property owner. Learn more →
Skip Tracing: The process of locating a person who cannot be found at their last known address. Recovery professionals use skip tracing tools to find current phone numbers, addresses, and contact information for former property owners. Learn more →
Skip Trace: A search performed to locate a hard-to-find individual. In surplus funds recovery, skip traces are run on former property owners to find their current contact information.
Surplus Funds List: A public record maintained by a county showing the names of former property owners who are owed leftover money from tax sales or foreclosure auctions. Also the name of the CRM platform built for recovery professionals. Learn more →

T

Tax Sale Overages: The surplus generated when a property sold at a tax sale brings in more than the outstanding tax debt, penalties, and sale costs. The overage belongs to the former owner in most states.
Tax Deed: A legal document that transfers ownership of a property to a buyer at a tax sale. When a property owner fails to pay taxes, the county may sell the property via tax deed auction.
Tax Lien: A legal claim placed on a property by the government for unpaid taxes. In tax lien states, investors purchase the lien (not the property) and earn interest when the owner pays the debt.
Tax Lien Certificate: A certificate issued to a buyer at a tax lien auction, representing the right to collect the unpaid taxes plus interest from the property owner. If the owner does not pay, the lienholder may eventually acquire the property.
Tax Sale: A public auction conducted by a county or municipality to sell properties or liens for unpaid property taxes. Tax sales can be tax deed sales (selling the property) or tax lien sales (selling the debt).
Tax Commissioner: A county official responsible for collecting property taxes. In some states, the tax commissioner conducts tax sales and holds resulting surplus funds.
Title Search: An examination of public records to determine the legal ownership history of a property. Used in surplus funds recovery to verify who owned the property at the time of sale.
Tyler v. Hennepin County: A 2023 United States Supreme Court case that ruled property owners have a constitutional right to surplus proceeds from tax sales. The decision reinforced protections for former property owners across all states.

U

Unclaimed Property: A broader category of assets (bank accounts, checks, insurance payouts, etc.) that have been abandoned or forgotten. Surplus funds may be transferred to the state unclaimed property division if not claimed within the deadline.

Disclaimer: This content is for informational purposes only and does not constitute legal, financial, or professional advice. Surplus Funds List is a technology provider and does not practice law or provide legal counsel. Data accuracy depends on the publishing county. For legal guidance regarding your specific situation, consult a licensed attorney in your state. Links to publicly available county records are provided as a convenience and do not imply endorsement or guarantee of accuracy.