New Jersey Surplus Funds
In New Jersey, Surplus Funds are the excess money left after a Sheriff’s Sale. If no other creditors come forward to claim the funds, they belong to the property owner(s).
In New Jersey, there is a specific procedure to attempt to obtain the funds. Based upon the increase in property values, properties are going to the Sheriff Sale with a value above what is owed. Understanding the Sheriff Sale, surplus funds, and the associated legal processes is crucial for those who believe they’re owed surplus funds.
Laws Governing Surplus Funds in NJ
New Jersey Court Rules 4:64-3 and 4:57-2 outline the process for claiming surplus funds. These rules stipulate how parties involved in the foreclosure, including non-parties, can claim these funds through the court system.
Who Is Entitled to Foreclosure Surplus Funds?
The owner of the property or their heirs can be entitled to surplus funds once all debts and liens on the property are cleared. If there are no subordinate liens or these creditors do not apply for the funds, the owner of the property or their heirs can claim these funds.
A lawyer can review the court records and sheriff sale documents to determine if you have a legal right to the surplus funds. This includes checking for any subordinate liens, judgments, or competing claims. Whether you are a former homeowner, an heir, or another interested party, an attorney can confirm your eligibility under New Jersey law.
Process for Claiming Foreclosure Surplus Funds in NJ
If your property has been sold at a sheriff sale and any surplus funds remain, the money will be deposited into the Superior Court Trust Fund. According to NJ Court Rules 4:64-3 and 4:57-2, any person who believes they are entitled to all or part of the surplus can file a motion with the court explaining why they are entitled to the money and asking for an order directing payment of the surplus funds.
Your motion should include an affidavit or certification detailing your claim to the surplus funds. This includes proving your identity, your relationship to the foreclosed property, the absence of other liens or claims, and the amount of surplus funds you believe you are owed.
The court will review your motion; if it is approved, the funds will be distributed via the Superior Court Trust Fund.
How Long Do I Have to Claim Surplus Funds?
In New Jersey, claimants typically have up to 10 years to claim surplus funds from the date of the foreclosure sale. However, it is advisable to act quickly to avoid complications. If surplus funds are not claimed within a certain period, they may eventually revert to the state as unclaimed property. You must act quickly to make these claims.
Do You Need a Lawyer to Claim Surplus Funds in NJ?
Although you don’t technically need a lawyer to claim surplus funds in NJ, having an experienced foreclosure defense attorney at your side can greatly improve your chances of success. So while it is possible to file a claim on your own, an attorney makes the process much easier as they’ll handle all the technicalities.
Contact Ira J. Metrick to Receive Help Claiming Surplus Funds
When filing for surplus funds, it is in your best interest to reach out to an experienced New Jersey foreclosure attorney. A lawyer can reduce your stress level by going through the process with you, ensuring that all steps are being followed appropriately and are completed on time.
If you believe you are entitled to surplus funds, have questions about how to claim them, or need help navigating the process and any additional legal hurdles, call the Law Office of Ira J. Metrick, Esq., today. For over 20 years, we have helped homeowners fight back against foreclosure, sheriff sales, and more. Contact us now for help claiming foreclosure overages, applying for a loan modification, or further information about important timelines.
