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How to claim foreclosure surplus funds in Alabama

If an Alabama foreclosure auction brings in more than you owe plus sale costs, the extra money normally goes first to other lienholders and then to you. We did not find an Alabama statute that sets a claim form, a deadline, or a court process for surplus after a power of sale foreclosure. That means you usually have to ask the foreclosing attorney for it yourself, in writing and quickly.

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Reviewed against Alabama law and official sources on October 11, 2026. General information, not legal advice.

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How to claim surplus funds in Alabama

  1. Who holds the money

    Right after the sale

    The sale is run by the lender or its attorney at the courthouse door, so the attorney or auctioneer usually collects the money. Ask who has the sale proceeds and how much the winning bid was.

  2. Who gets paid before you

    After the sale costs and the foreclosed loan are paid, any extra money normally goes to lienholders below that mortgage, such as a second mortgage, and then to you. No Alabama statute was found that spells out this order for a power of sale foreclosure.

  3. Ask for an accounting in writing

    As soon as possible after the sale

    Write to the foreclosing attorney named in the sale notice and ask for the bid amount, the payoff of the loan and costs, any payments to other lienholders, and the amount left. Give a mailing address that will reach you and keep copies.

  4. If there is a dispute

    If you do not get an answer

    If the attorney will not respond or others claim the money, a court may need to decide who gets it. Legal Services Alabama or a private lawyer can help, and you can complain about a licensed lender or servicer to the State Banking Department.

  5. If the money goes unclaimed

    If you cannot be found

    Money a holder cannot pay to its owner can be turned over to the Alabama State Treasurer's Unclaimed Property Division. Searching and claiming there is free.

  6. Limits on paid recovery help

    Before you sign anything

    For money already held by the State Treasurer, a fee agreement made from the time it is presumed abandoned until 24 months after it reaches the Treasurer is void, and fees are capped at 10 percent. We found no cap for surplus still held by the foreclosing attorney, so never sign over a share before you ask for the money yourself.

    Ala. Code § 35-12-93

  7. Excess after a tax sale

    Within 3 years, or from year 3 to year 10

    Money left over after a property tax sale is held by the county and has its own rules and deadlines. See our Alabama property tax foreclosure page.

    Ala. Code § 40-10-28

What Alabama law says about leftover sale money

Surplus after a mortgage foreclosure sale

If the sale brings in more than you owe plus sale costs, the extra money normally goes first to other lienholders and then to you. We did not find an Alabama statute that sets a claim process for a power of sale foreclosure, so ask the foreclosing attorney in writing for an accounting of the sale proceeds.

Common questions in Alabama

Is there a deadline to claim surplus after an Alabama mortgage foreclosure?

We did not find an Alabama statute that sets one for a power of sale foreclosure. Do not wait: ask the foreclosing attorney in writing right after the sale, because the longer money sits, the harder it can be to trace.

Who can help me get an accounting of my Alabama foreclosure sale?

Legal Services Alabama offers free civil legal help to people who qualify, and AlabamaLegalHelp.org has foreclosure information and a legal aid finder. The Alabama State Bar Lawyer Referral Service can connect you with a private lawyer.

Can someone charge me to find my Alabama foreclosure surplus?

You can ask for surplus yourself at no cost. If the money has already gone to the State Treasurer, Alabama limits any finder fee to 10 percent and voids agreements made too early, and claiming from the Treasurer is free. Be wary of anyone who asks you to sign over a share of money you have not yet asked for.

Step by step

More on foreclosure in Alabama

Understand the process

What is happening and how much time there is.

Weigh your options

What can stop it, and what happens if it goes ahead.

Get help now

Who to call, and what to do when a sale is scheduled.

Also in Alabama

Property tax foreclosure Claim surplus funds (this page)

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Sources for this page

  1. Code of Alabama § 40-10-28 Disposition of excess arising from sale (Alabama Legislature, ALISON)
  2. Alabama HB270 (2024), enrolled: Act 2024-261 amending §§ 40-10-28 and 40-10-197
  3. Alabama Department of Revenue Rule 810-4-6-.02: Reduction of interest rate on redemptions
  4. Mobile County Revenue Commission: Tax Sale Questions
  5. Alabama State Treasurer: Unclaimed Property
  6. Code of Alabama (Alabama Legislature, ALISON): §§ 35-10-8, 35-10-12, 35-10-13, 35-10-14
  7. U.S. Treasury: Homeowner Assistance Fund (program ended September 30, 2026)
  8. CFPB: 12 C.F.R. § 1024.41 Loss mitigation procedures
  9. Alabama Center for Dispute Resolution: Foreclosure Prevention Mortgage Modification Mediation Program
  10. Alabama Attorney General: Consumer Complaint
  11. Alabama State Banking Department: File a Complaint
  12. AlabamaLegalHelp.org: Foreclosure