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How do I claim leftover money after a foreclosure sale?

If your home sold at a trustee sale for more than what was owed on it, the extra money is called surplus funds. Sale costs, the foreclosed loan, and valid claims that come first are paid first. Any money left goes to the person entitled to it, often the former owner. You claim it in writing with the trustee, and free help is available, so you do not need to sign your claim over to anyone.

By Guillermo Serafin, broker and owner of Serve First Realty. Updated October 2026.

Who gets paid before me?

California law sets the order. Money from a trustee sale generally goes to:

  • First, the allowed costs of the foreclosure and the sale.
  • Next, the loan that was foreclosed.
  • Then, any other loans or liens on the home, such as a second mortgage, in order of priority.
  • Last, you, the former owner, get whatever is left.

So a high sale price does not always mean money for you. It depends on what else was owed on the home.

What are the steps to claim it?

  • Step 1: Give the trustee your new address. The trustee is the company named on your notice of sale. Do this as soon as you move, so they can reach you.
  • Step 2: Watch your mail. The trustee must send a notice about surplus funds within 30 days after the trustee's deed is signed.
  • Step 3: Send your written claim to the trustee. It must be received within 30 days after the trustee sends the notice. Send it in a way you can track, and keep a copy.
  • Step 4: If no one disputes the money, the trustee should pay it out within 30 days after the notice period ends.
  • Step 5: If there is a dispute about who should be paid, the trustee may deposit the money with the local superior court. You should get another notice with a 30-day period to file a claim with the court.

What should I send with my claim?

Ask the trustee exactly what they need and how they want it sent. Then send everything at once, keep copies, and write down the date and tracking number. If a second loan or another lien holder also files a claim, the trustee or the court decides who is paid first under the law.

What if I missed a deadline?

Do not give up. Missing a trustee deadline does not always mean the money is lost forever. If the funds were sent to the court, you may still be able to claim them there. Other rules, including unclaimed property rules, can also apply. Get free help quickly so you do not lose more time.

Watch out for surplus-funds hunters

After a sale, strangers may call or write offering to "recover" your money for a large share of it. Be careful.

  • California law says no one may contact you to claim residential surplus funds until 90 days after the trustee's deed is recorded. That rule limits them. It does not mean you have to wait 90 days to file your own claim.
  • California foreclosure consultant laws put strict limits on paid surplus-recovery services.
  • Never sign over your claim, or give anyone power of attorney, without an independent review by a lawyer or legal aid.
  • Read our scam red flags checklist.

Will I owe taxes on this money?

A foreclosure can have tax effects. Talk to a tax professional, and read our 2026 guide to taxes after foreclosure.

Where can I get free help?

General information, not legal advice. Sources: California Civil Code sections 2924j, 2924k, 2924.21, 2945.1, and 2945.4; California Courts Self-Help Guide, "Your rights in a nonjudicial foreclosure" (checked October 2026).

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IMPORTANT NOTICE

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Even if you accept this offer and use our service, your lender may not agree to change your loan.

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Think you are owed leftover money?

Ask the trustee whether money is left and how to make a claim. You do not have to hire a recovery company. A lawyer or legal aid office may help if claims are disputed. We do not offer paid help to recover leftover money.

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