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 confirm and obtain the funds. Based upon the increase in property values, properties are going to Sheriff Sale with value above what is owed. Understanding the Sheriff Sale, surplus funds, and the associated legal processes is crucial for those who find themselves navigating this complex terrain.
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.
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. It is crucial for individuals to make timely claims to these funds.
Contact Ira J. Metrick to Receive Help Claiming Surplus Funds
When filing for surplus funds, it may be in your best interest to reach out to an experienced New Jersey foreclosure attorney.
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.
