How to claim foreclosure surplus funds in Connecticut

How to claim surplus funds in Connecticut

1. Only a sale creates surplus

   Before judgment

   In a strict foreclosure, title passes on the law day and there is no sale, so there is no surplus. If your home is worth more than you owe, you can ask the judge in a written motion to order a foreclosure by sale. The court decides whether to grant it.

   Conn. Gen. Stat. § 49-24

2. Sale money is paid into court

   After the auction

   The proceeds of a foreclosure sale are brought into court, not paid to the lender directly. If the lender itself buys the home, it must bring in only the part of its bid that is more than its judgment debt, interest and costs.

   Conn. Gen. Stat. § 49-27

3. The supplemental judgment

   After the judge approves the sale

   Once the sale is approved, the court enters a supplemental judgment listing who is entitled to the money and how much each gets. Stay in the case after the auction and watch for this step, because it is where you show the court that you are owed what is left.

   Conn. Gen. Stat. § 49-27

4. Lienholders are paid before you

   In the supplemental judgment

   The foreclosing lender, other mortgage and lien holders, and the costs of the sale are paid before the former owner. Debts secured by later mortgages or liens are paid out of the proceeds even if they were not yet due.

   Conn. Gen. Stat. § 49-27

5. Unclaimed money goes to the State Treasurer

   After 3 years

   Money held by a court for an owner that stays unclaimed for more than three years is presumed abandoned and goes to the State Treasurer. You can search the Treasurer's unclaimed property list, called CT Big List, and file a claim for free.

   Conn. Gen. Stat. §§ 3-62a, 3-70a(a)

6. Limits on finder fees

   Applies to money held by the Treasurer

   An agreement to locate unclaimed property held by the Treasurer is not valid if it charges more than 10 percent of the value or is signed within two years after the property is reported. It must be in writing, signed by you, and say that you can claim the money from the Treasurer directly at no cost. Never sign one without reading these terms.

   Conn. Gen. Stat. § 3-70a(c)

7. Surplus after a town tax sale

   90 days after money is paid to court

   If your home was sold by the town tax collector for unpaid property taxes, the surplus goes to the Superior Court clerk and you have only 90 days to apply for it. See our Connecticut property tax foreclosure page for the steps.

   Conn. Gen. Stat. § 12-157(i)

What Connecticut law says about leftover sale money

Common questions in Connecticut