- Who sends it
- The lender's lawyer, by mail; the sale officer also sends notice of the amount to all parties
- What it starts
- Your chance to ask the court to turn the surplus over to you
- Do this first
- Fill out the enclosed petition and ask the circuit clerk how to set a court date
What this document is in Illinois
Illinois law says any surplus after the sale is held by the person the court appointed to run the sale until a court order says who gets it. That person must send written notice of the amount to all parties (735 ILCS 5/15-1512(d)).
Illinois Supreme Court Rule 113(f)(3) and (g) add a Special Notice of Surplus Funds that the lender's lawyer must mail to the homeowners, with a Petition for Turnover of Surplus Funds form enclosed. The official form says: "There is $____ remaining after the sale of your property. You may be entitled to this money." The national surplus funds notice page covers other states.
What it does and does not mean
- It does mean the sale brought in more than the amount due in the judgment.
- It does not mean all of it is yours. Liens ranked ahead of you, such as a second mortgage, are paid in the order the court set (735 ILCS 5/15-1512(c)).
- It does not pay itself. The money stays with the sale officer until a judge orders it paid out. If no one gets an order, the statute says it is forfeited to the State.
How to claim it, step by step
- Complete the enclosed Petition for Turnover of Surplus Funds. It asks the amount, your interest in the property, and whether you have a bankruptcy case. If you do, attach the bankruptcy court's order allowing you to receive the money.
- File it with the circuit clerk in the county where your case is, usually by e-filing. You must have filed an appearance in the case; the petition asks you to confirm that.
- Schedule a date to present it to the judge.
- Mail a copy to everyone on the service list at least 5 business days before that court date. Business days leave out weekends and court holidays.
- Take the judge's order to the office holding the money. Read more on Illinois foreclosure surplus funds.
Before you file
- Illinois Legal Aid Online says collecting the surplus generally ends the foreclosure, so you usually cannot appeal afterward. If you think the foreclosure was wrong, talk to a lawyer first.
- If you never got this notice, check the Report of Sale in the court file at the circuit clerk's office.
- If the money has already gone to the State Treasurer as unclaimed property, you can search and claim it yourself at no cost.
Scam warning
Surplus notices are in the public court file, so companies often write to former owners offering to collect the money for a percentage. No Illinois law caps fees for surplus still held in the court case. You can file the petition yourself for free, and legal aid can help. Free help: Illinois Legal Aid Online and Illinois Court Help at 833-411-1121.
The rest of the Illinois process
See how foreclosure works in Illinois, the timeline, ways to stop it and free help in Illinois, or read the national guide to this letter.
Common questions
Is there a deadline to claim Illinois foreclosure surplus?
735 ILCS 5/15-1512 does not set a number of days. It says the surplus is held until someone gets a court order, or until it is forfeited to the State without one. Do not wait: file the petition as soon as you get the notice.
Do I need a lawyer to file the Illinois Petition for Turnover of Surplus Funds?
No. Rule 113 requires each circuit to make the form available and the Special Notice encloses it. You fill it out, file it, set a date and mail copies 5 business days ahead. A lawyer or legal aid can help if a second lender also claims the money.
Can a second mortgage take part of my Illinois surplus?
Yes. Claims are paid in the order of priority the court set in the judgment or the order confirming the sale, before any money reaches you (735 ILCS 5/15-1512(c)).
Other Illinois letters
- Summons and Complaint to Foreclose Mortgage, with the Homeowner Notice (Important Information for Homeowners in Foreclosure)In Illinois, every home foreclosure is a lawsuit, and the summons is how it starts for you. You have 30 days after you are served to file an Appearance and Answer, and 90 days to catch up the loan. You still own your home and can keep living there.
- Notice of Entry of Default and Judgment of ForeclosureThis notice from the circuit clerk means the judge entered an order of default and a judgment of foreclosure because you did not respond in time. The home has not been sold yet. You may be able to ask the judge to undo the default, and your redemption rights continue until the date in the judgment.
- Notice of Sale (judicial sale)An Illinois notice of sale gives the date, time and place of the court-ordered sale of your home. It can be published while you still have time to redeem. The sale is not final until a judge confirms it, and you may still be able to stop or delay it.
- Notice of the motion to confirm the sale, and the order confirming the saleIn Illinois the sale is not final on auction day. The buyer or lender must ask the judge to confirm it, and you must be mailed notice. This hearing is your chance to object. If the judge confirms, the buyer can take possession 30 days later.
- Notice to known occupants that control of the property has changedAfter an Illinois foreclosure sale is confirmed, the new owner must tell the people living in the building who now controls it. The notice must say it is NOT a notice to vacate. If you rent, you may have the right to stay for a time, and you cannot be removed without a court order naming you.