How to claim foreclosure surplus funds in Idaho

How to claim surplus funds in Idaho

1. The trustee holds the sale money

   Right after the trustee's sale

   The trustee named in your notice of sale collects the winning bid. The trustee must use it first for the costs of the sale, including a reasonable trustee's fee and attorney's fee, and then for the loan that was foreclosed.

   Idaho Code § 45-1507(1), (2)

2. Later recorded liens are paid before you

   After the foreclosed loan is paid

   Next, the trustee pays people who recorded liens after the deed of trust, such as a second mortgage or a judgment lien, as their interests appear. Only what is left after them is surplus.

   Idaho Code § 45-1507(3)

3. Ask the trustee if there was a surplus

   As soon as the sale is over

   Write to the trustee, give your current mailing address, and ask for the sale price, the payoff amount, and the amount of any surplus. Keep a copy of your letter and the date you sent it.

   Idaho Code § 45-1507(4)

4. Claim the surplus

   No deadline is set in the statute

   The surplus goes to the grantor of the deed of trust, which is usually you, or to a successor in interest who is entitled to it. Send the trustee proof of who you are and that you are entitled to it. If more than one person claims the money, a court may need to decide, so talk to legal aid.

   Idaho Code § 45-1507(4)

5. If the money is not claimed

   Varies with who is holding the money

   Money that goes unclaimed can be turned over to the Idaho State Treasurer's unclaimed property program under the Revised Uniform Unclaimed Property Act. Money held by a court or a government office is presumed abandoned 1 year after it becomes payable. You can search and file a claim yourself on the state's official unclaimed property site.

   Idaho Code § 14-5-201

6. Be careful with surplus finders

   Before you sign anything

   An agreement to pay someone a fee to locate money the State Treasurer holds for you is void if it is signed after the money is presumed abandoned and before 24 months after it was turned over to the state. Idaho law does not set a percentage cap on fees for finding foreclosure surplus, so never sign over a share of your surplus without reading the contract and asking legal aid first.

   Idaho Code § 14-5-1301

7. Surplus after a property tax sale

   If your home was lost for unpaid property taxes rather than a mortgage, a different law applies, and the county commissioners pay the excess proceeds. See our Idaho property tax foreclosure page for that process.

   Idaho Code § 31-808

What Idaho law says about leftover sale money

Common questions in Idaho