How to claim foreclosure surplus funds in Iowa

How to claim surplus funds in Iowa

1. The sheriff collects the sale money

   At the sheriff's sale

   The sale money pays the mortgage debt and costs. If there is overplus and no other lien on the property, it must be paid to you as the mortgagor.

   Iowa Code § 654.7

2. Other lienholders come first

   Before the overplus is paid out

   If other lienholders claim the overplus, the sheriff pays it to the clerk of the district court and it is applied as the court orders. If you agreed to a voluntary nonjudicial foreclosure instead, you gave up any extra money, and the required disclosure form must tell you that.

   Iowa Code §§ 626.82, 654.18

3. Find out if there was overplus

   After the sale

   Ask the sheriff's office that held the sale, or the clerk of court in your foreclosure case, for the sale price and whether any overplus was paid out or deposited with the clerk.

4. Claim it

   After the sale; no deadline is set in the statute

   If no other lien is claimed, ask the sheriff to pay you, with proof of identity and your current address. If the money was paid to the clerk, file a request in your foreclosure case asking the court to order it paid to you.

   Iowa Code §§ 654.7, 626.82

5. Unclaimed money goes to the State Treasurer

   2 years after it becomes payable

   Money held by a court or public officer that stays unclaimed for more than 2 years after it becomes payable is presumed abandoned, and the clerk sends it to the Treasurer of State. You can search and claim it through the Great Iowa Treasure Hunt.

   Iowa Code §§ 556.8, 602.8105

6. Finder fees are capped at 15%

   Before you sign anything

   For money held by the Treasurer of State, an agreement to pay someone to recover it is unenforceable if made within 24 months after the money was turned over. After that, the fee cannot be more than 15%, the agreement must be in writing and signed by you, and the finder must be a licensed private investigation business.

   Iowa Code § 556.11(10)

7. Property tax sales are different

   Iowa's property tax sale law does not pay surplus to former owners the same way. See our Iowa property tax foreclosure page.

   Iowa Code chs. 446 to 448

What Iowa law says about leftover sale money

Common questions in Iowa