Let Our 30 Years Of Experience Work For You

Photo of attorneys Shelley Slafkes and Bruce Levitt
Photo of attorneys Shelley Slafkes and Bruce Levitt
  1. Home
  2.  | 
  3. Foreclosure Defense
  4.  | Am I Entitled to Surplus Funds After a NJ Foreclosure?

Am I Entitled to Surplus Funds After a NJ Foreclosure?

On Behalf of | May 14, 2024 | Foreclosure Defense, Foreclosure Saving Your Home


If you are a homeowner facing foreclosure, the experience can be very overwhelming and upsetting. There is, however, a little known process that can give you some hope—recovering surplus funds. If your property sells at Sheriff Sale for more than you owe, you may be entitled to some money-called surplus funds. At Levitt and Slafkes, P.C. we understand the complexities of NJ foreclosure law and can help you obtain any surplus funds that you are entitled to.

In this blog we will explain what surplus funds are, how they occur, and what you need to know about them in the context of a New Jersey foreclosure.

What Are Surplus Funds?

Surplus funds are the monies remaining after a New Jersey Sheriff Sale occurs, and the mortgage, taxes and other legal obligations have been paid.

Read our blog for a full discussion of the Sheriff Sale Process in New Jersey.

What Causes Surplus Funds?

Surplus funds occur when property is sold at the Sheriff Sale for a higher amount then what the foreclosing lender is owed. The proceeds of the Sale are first used to pay off the mortgage debt, (which includes outstanding interest, penalties, and legal fees), taxes and any other court ordered fees.

Any money left over is considered surplus funds.

Who Is Entitled to Surplus Funds?

Any other creditors that have liens or judgments on the home can apply for the surplus funds. These creditors have first priority over the funds. After that, if there are any funds left, they should belong to the homeowner or their heirs

How Can I Get Surplus Funds Owed to Me?

If your home has been sold at a sheriff sale and any mortgage surplus funds remain after the lender has satisfied the mortgage debt, the money will be deposited into the Superior Court Trust Fund. According to New Jersey Court Rules 4:57-2, and 4:64-3  any person who believe 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.

Speak to an Attorney at Levitt & Slafkes

If your home was sold at a Sheriff Sale and you think you are entitled to surplus funds contact attorney Bruce H. Levitt today. Call us at 973-323-2953 or contact us online to schedule a free consultation.

We are proudly designated as a debt relief agency by an Act of Congress. We have proudly assisted consumers in filing for Bankruptcy Relief for over 30 years. The information on this website and blogs is for general information purposes only. Nothing should be taken as legal advice for any individual case or situation.