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How to claim foreclosure surplus funds in Maryland

After a Maryland mortgage foreclosure sale, the circuit court must ratify the sale, and then the court can send the case to a court-appointed auditor who prepares an account showing how the sale money is divided. Any surplus left after the mortgage, costs and later liens are paid goes to you as the former owner. You claim it through the court case, so keep your address current with the court and watch for the auditor's report.

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Reviewed against Maryland law and official sources on October 12, 2026. General information, not legal advice.

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How to claim surplus funds in Maryland

  1. Sale is ratified and sent to the auditor

    After the court ratifies the sale

    Once the sale is ratified, the court can refer the case to an auditor to state an account of the sale money. The trustee who ran the sale holds the money and later pays it out as the court-approved audit says.

    Md. Rule 14-305; Md. Code, Real Prop. § 7-315

  2. Ask for the surplus in the court case

    Before the auditor's report is ratified

    A person who claims an interest in the sale proceeds can file an application in the foreclosure case for payment from the surplus. You can also file exceptions to the auditor's report if it does not give you the money you are owed. There is no separate state form, and the deadline for exceptions is short, so file as soon as you see the report.

    Md. Rule 14-216(a)

  3. Later liens are paid before you

    A second mortgage, home equity line or other lien holder can also claim the surplus, and lien holders are paid in order of priority before any money reaches you. The auditor recommends who gets what, and the court decides when it ratifies the audit.

    Md. Rule 14-305

  4. Be careful with offers to buy your surplus

    You can cancel within 10 days after the auditor states the account

    Maryland calls a deal to buy your surplus a foreclosure surplus acquisition. It must be a written contract with a Notice of Rescission, and you can cancel it within 10 days after the auditor states the account by repaying what you got plus 8 percent interest. Maryland law sets no percentage cap on the fee, so never sign before asking legal aid how to file your own claim for free.

    Md. Code, Real Prop. §§ 7-314, 7-315

  5. Unclaimed surplus money

    Money that goes unclaimed for years can end up with the Comptroller's unclaimed property program, where you can file a claim on its form at no cost. Any agreement to pay someone a fee to recover property within 24 months after it was turned over to the state cannot be enforced.

    Md. Code, Com. Law §§ 17-318, 17-325

  6. Surplus after a property tax sale

    Surplus after a tax sale works differently: the county collector pays it through a county claim process. See the Maryland property tax foreclosure page for that process.

    Md. Code, Tax-Prop. § 14-818

What Maryland law says about leftover sale money

Surplus after a mortgage foreclosure sale

After ratification, a court-appointed auditor files a report showing how the sale money is divided. If there is a surplus, the auditor recommends to the court who should receive it. You are entitled to a copy of the auditor's report, so keep your address current with the court and watch your case file.

Md. Rule 14-305

Common questions in Maryland

How do I find out if my Maryland foreclosure sale left a surplus?

Look at the court file in the circuit court where the foreclosure was filed. The trustee's report of sale shows the sale price, and the auditor's report shows how the money is split. You can ask the circuit court clerk for copies or check your mail for notice of the audit.

Can a second mortgage lender take my Maryland surplus?

Yes, if it has a valid lien on the home. Liens are paid in order of priority before the former owner, so a second mortgage or home equity line usually gets paid from the surplus first. If you think a claim is wrong or too high, file exceptions to the auditor's report.

What if my Maryland surplus was never paid to me?

First ask the trustee and the court clerk whether the money is still in the case. If it was turned over to the state, search and claim it through the Comptroller's unclaimed property program, which does not charge a fee.

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More on foreclosure in Maryland

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

Also in Maryland

Property tax foreclosure Claim surplus funds (this page)

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Sources for this page

  1. Md. Code, Tax-Prop. § 14-811 (property withheld from tax sale)
  2. Md. Code, Tax-Prop. § 14-812 (final bill and notice before tax sale)
  3. Md. Code, Tax-Prop. § 14-817 (conduct of tax sale)
  4. Md. Code, Tax-Prop. § 14-818 (payment of purchase price, balance to person entitled)
  5. Md. Code, Tax-Prop. § 14-820 (certificate of sale, rate of redemption)
  6. Md. Code, Tax-Prop. § 14-827 (right to redeem)
  7. Md. Code, Tax-Prop. § 14-828 (redemption amount)
  8. Md. Code, Tax-Prop. § 14-833 (complaint to foreclose right of redemption, notices)
  9. Md. Code, Tax-Prop. § 14-844 (judgment foreclosing right of redemption)
  10. Md. Code, Tax-Prop. § 14-847 (deed after judgment)
  11. Md. Code, Tax-Prop. § 14-850 (writ of possession)
  12. Md. Code, Real Prop. § 7-314 (foreclosure surplus acquisition contracts)
  13. Md. Code, Real Prop. § 7-315 (rescission of surplus acquisition)
  14. Md. Code, Com. Law § 17-318 (claims for unclaimed property)
  15. Md. Code, Com. Law § 17-325 (agreements to recover unclaimed property)
  16. Maryland SDAT, Office of the State Tax Sale Ombudsman
  17. Maryland SDAT, Homeowner Protection Program
  18. Department of Legislative Services, Fiscal and Policy Note, HB 59 (2025), Tax Sales Revisions
  19. Appellate Court of Maryland, Omid Land Group, LLC v. Wooley, No. 1624, Sept. Term 2024 (unreported, Feb. 10, 2026)
  20. Pung v. Isabella County, No. 25-95 (U.S. June 23, 2026), slip opinion
  21. Md. Code, Real Property § 7-105.1
  22. Md. Code, Real Property § 7-105.2
  23. Md. Code, Real Property § 7-105.4
  24. Md. Code, Real Property § 7-305
  25. Md. Code, Real Property § 7-307
  26. Md. Code, Real Property § 7-320
  27. Maryland Office of Financial Regulation, Maryland's Mortgage Foreclosure Process
  28. Maryland Office of Financial Regulation, Foreclosure Help for Homeowners
  29. Maryland Commissioner of Financial Regulation, Advisory: Termination of the Homeowner Assistance Fund (October 25, 2023)
  30. Maryland DHCD, Foreclosure Prevention
  31. The Maryland People's Law Library, Foreclosure Steps and Timeline