Have you received a letter from a Clerk of Superior Court stating you may be entitled to claim "surplus funds?"
What even are ‘surplus funds’ ?!
When a property goes into foreclosure –often due to a defaulted mortgage, unpaid property taxes, or even an outstanding lien, it is put up for public auction, so the lender can sell off the property to recover the money they are owed. Once the property has sold at this auction, the proceeds from the sale will go to settle any outstanding debts – like the mortgage balance, outstanding property taxes, or any judgments, liens, or other professional fees associated with the property. If there are any funds leftover after settling all the pre-existing (qualified) debt(s) – THAT leftover is what makes these “surplus” funds we are referring to – and these funds legally belong to the original property owner – not the bank, mortgage lender, courthouse, government or anyone else.
How do I file a surplus funds claim?
Once the property is sold and the surplus funds have been generated (and all prior debts have been satisfied), this money is handed over to the local clerk in the county the property was auctioned in for safekeeping until the rightful owner comes forth to declare ownership of the funds and stakes a claim to them. This basically means the property owner has to provide the proper evidence to show that they are, in-fact, entitled to make a claim to these funds as the rightful, legal claimant.
How is that done? In North Carolina, you must initiate a type of court proceeding called a “Special Proceeding” which allows a property’s ownership & debt history to be verified through a series of fact-producing petitions and hearings before the clerk will consider paying out a claim. Sadly, there are no court-provided claim forms available – nor a convenient website (like nccash.com) to claim this type of surplus property online.
How much does a surplus funds claim cost to file?
The costs associated with claiming surplus funds may include, but are not limited to –
- $120 in Court Filing Fees
*each county sets its own fees so this may vary a bit.
- Any Legal or Attorney Fees
Professional fees you may have accrued while filing your claim (and don’t forget – any valid property-related debts must be satisfied before you get your cut). These legal fees are for researching your claim, drafting your claim petition, filing & opening your claim case, preparing other legally required tasks, and representing you and your claim in court at your claim hearing.
- Misc Other Costs ( aka “Cost of Service”, Postage, etc)
Such as the preparation & postage costs associated with the ‘Notice of Hearing’ via certfified or otherwise trackable means (This Notice gives notice to any other legally ‘interested’ party a heads up that you are making a claim to this money and asserting that you are legally entitled to lay claim to it (so they have the time and opportunity to respond to your claim – including produce their own supporting evidence – or else be forever barred from staking a claim to any of these funds later). - This Notice must be sent via signature-required, trackable means (ex. USPS -certified mail, FedEx/UPS Signature Req)
- Legal/Case Research
Legal research necessary to document the facts of your claim. Typically, between $200-$500.
Let's get started on your claim!
Fill out the complimentary claim review form and we'll be in touch. Not ready? Then download our Guide to Claiming Surplus Funds in North Carolina to learn more about what to expect.
