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How to claim foreclosure surplus funds in Kentucky

Every Kentucky home foreclosure goes through circuit court, and the sale is run by the court's master commissioner. If the home sells for more than the judgment, costs and other liens in the case, the court orders the extra paid to the former owner. You claim it in the foreclosure case, and money that sits unclaimed can end up with the Kentucky State Treasury.

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

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How to claim surplus funds in Kentucky

  1. The master commissioner holds the sale money

    From the sale until the court orders it paid out

    The master commissioner collects the price from the buyer and reports the sale to the court. Nothing is paid out until the judge confirms the sale and signs an order saying who gets what.

  2. Check the report of sale

    Soon after the sale

    Ask the master commissioner or the circuit court clerk for the report of sale. It shows the price and the amount of the judgment, so you can see whether there is any money left over.

  3. Other lienholders are paid first

    The foreclosing lender, then other liens such as a second mortgage or tax bills, are paid in the order the court sets. A lienholder can only be paid after it proves its claim in the case.

    KRS 426.006

  4. File your claim for excess funds

    After the court confirms the sale

    The Jefferson County master commissioner says original owners have a right to leftover funds and may file a claim for excess funds. Ask the commissioner's office or circuit clerk in your county how to file, usually a motion in the case asking the judge to pay you. Kentucky law says the excess goes to the owner whose property was sold.

    KRS 426.500

  5. Unclaimed money goes to the State Treasury

    Between 1 and 5 years after it can be paid out

    Money held by a court may be sent to the Kentucky State Treasury one year after it becomes payable and must be sent within five years. You can search the Treasury's unclaimed property records and claim it yourself for free.

    KRS 393A.040(9)

  6. Be careful with surplus recovery offers

    Kentucky law lets you name an agent in a signed record to recover money held by the Treasury, but we found no fee cap in the Kentucky unclaimed property law. Do not sign a fee agreement or assignment until you have asked the court clerk what you are owed.

    KRS 393A.760

  7. Lost your home for unpaid taxes instead?

    A tax certificate foreclosure is also sold by a master commissioner, but the steps before the sale are different. See the Kentucky property tax foreclosure page for how surplus works after a tax sale.

    KRS 134.546

What Kentucky law says about leftover sale money

Surplus after a mortgage foreclosure sale

If the home sells for more than what is owed on the judgment plus costs, the lender does not keep the extra. The sale money is paid out by order of the circuit court. Other lienholders named in the case can be paid from it, but only after they prove their claims in the case. Money left after that belongs to the former owner. Ask the master commissioner's office or the circuit court clerk how to request any surplus in your case, and keep your mailing address current with the court.

KRS 426.006; KRS 426.500

Common questions in Kentucky

How long do I have to claim foreclosure surplus in Kentucky?

No statute sets a short deadline while the money is in the court case. Kentucky law lets court-held money be sent to the State Treasury after one year and requires it after five years. You can still claim it from the Treasury after that.

Can the bank keep the extra money from my Kentucky foreclosure sale?

No. The lender gets the judgment, interest and costs the court allowed, and other lienholders get what they prove. Whatever remains is paid to the former owner by court order.

Should I pay a company to find my Kentucky surplus?

You can ask the master commissioner or circuit clerk yourself whether there is a surplus, and you can search the State Treasury's unclaimed property list for free. Kentucky's unclaimed property law has no fee cap that we could find, so read any contract carefully and never sign over your rights to the money without advice.

Step by step

More on foreclosure in Kentucky

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

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

Also in Kentucky

Property tax foreclosure Claim surplus funds (this page)

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Sources for this page

  1. KRS 134.015: Due dates, discounts and penalties
  2. KRS 134.122: Transfer of certificates of delinquency to clerk
  3. KRS 134.125: Interest on certificates of delinquency
  4. KRS 134.128: Sale of certificates of delinquency to third parties
  5. KRS 134.452: Third-party purchaser fees
  6. KRS 134.490: Notices by third-party purchaser; installment plans
  7. KRS 134.546: Action on certificates of delinquency; sale on foreclosure
  8. KRS 134.549: Sale of land obtained by taxing unit; redemption
  9. KRS 393A.040: When property presumed abandoned
  10. KRS 393A.760: Agent of apparent owner
  11. Kentucky Department of Revenue: Delinquent Property Tax
  12. Jefferson County Master Commissioner: FAQs
  13. Kentucky State Treasury: About Unclaimed Property
  14. KRS 426.005, Personal judgment in action to enforce mortgage or lien
  15. KRS 426.006, Other liens to be stated in action to enforce lien
  16. KRS 426.205, Sale of vacant and abandoned real property
  17. KRS 426.260, Motion for possession by purchaser
  18. KRS 426.500, Surplus proceeds of sale
  19. KRS 426.520, Appraisal of real property before judicial sale
  20. KRS 426.522, Public, judicial sale by licensed auctioneer (amended effective July 15, 2026)
  21. KRS 426.525, Mortgage foreclosure forbidden; rights of mortgagee after default
  22. KRS 426.530, Right of redemption
  23. KRS 426.540, Redemption right may be sold; report of sale
  24. KRS 426.560, Newspaper advertisement required in execution and judicial sales
  25. KRS 426.700, Time, place and terms of sale; notice
  26. KRS 426.705, Bond required of purchaser
  27. KRS 424.130, Times and periods of publication
  28. KRS 454.165, Personal judgment against defendant constructively summoned forbidden
  29. KRS 427.060, Homestead exemption; exceptions
  30. KRS 286.2-020, Required disclosure of Kentucky Homeownership Protection Center services
  31. KRS 380.010, Debt adjusting definitions
  32. KRS 380.030, Persons exempt from classification as debt adjuster
  33. KRS 380.040, Persons engaged in debt adjusting: prohibitions and registration
  34. KRS 380.060, Contract, disclosure and debtor's right to cancel
  35. KRS 380.110, Cause of action for violation of KRS Chapter 380
  36. Supreme Court of Kentucky Order 2024-40 (corrected, entered January 21, 2025), AP Part IV, Master Commissioners of the Circuit Court
  37. Jefferson Circuit Court local rules
  38. Jefferson Circuit Court Master Commissioner
  39. Kentucky Homeownership Protection Center, home page (HAF closure notice)
  40. Kentucky Homeownership Protection Center, Homeowner Assistance Fund eligibility page
  41. Kentucky Homeownership Protection Center, Foreclosure Process
  42. Kentucky Homeownership Protection Center, Resources
  43. U.S. Department of the Treasury, Homeowner Assistance Fund
  44. Kentucky Justice Online, Foreclosure (last updated August 20, 2024)
  45. Kentucky Court of Justice, Legal Self-Help
  46. Kentucky Attorney General, Consumer Complaints
  47. Kentucky Department of Financial Institutions, Submit an Online Complaint
  48. Kentucky Bar Association, Lawyer Referral Services
  49. Kentucky Department of Revenue, Homestead Exemption