In New Jersey, if a foreclosed property sells at a sheriff’s sale for more than the debt owed on it, the extra money is called mortgage foreclosure surplus funds or “Surplus Equity.” Here is how Mortgage Surplus Funds work in NJ.
How Are Surplus Funds Calculated?
Surplus funds, or foreclosure overages, are created if the property sells at Sheriff Sale for more than the amount due to the Lender.
Who Gets Foreclosure Surplus Funds?
Any person or entity named in the foreclosure complaint and holding a judgment, lien, or other interest in the property (such as an heir) can apply for the funds. Once appropriate applications are made to the Court for the Surplus Funds, they should be given to the person or entity with priority. However, if a person or entity does not respond to the Court, they can lose their right to the funds.
How to Claim Foreclosure Overage in NJ
To claim Surplus Funds in New Jersey, a formal motion must be filed with the Court and the Surplus Funds Unit. This involves submitting a detailed written claim or application that outlines their entitlement to the surplus funds, supported by proof of their identity and their former ownership or lien status.
We Can Help You Claim Surplus Funds
Anyone can apply for Surplus Funds in New Jersey, but it is recommended that you speak with an experienced licensed New Jersey attorney.
Contact Ira J. Metrick to Claim Mortgage Surplus Funds
When filing for surplus funds, it may be in your best interest to reach out to an experienced New Jersey foreclosure attorney, as they will be able to guide you through the process and act as a valuable resource.
If your property was sold at a Sheriff’s Sale and you have questions about obtaining Surplus Funds, contact the Law Office of Ira J. Metrick today.
