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How to claim foreclosure surplus funds in Massachusetts

Most Massachusetts foreclosures are sales under the power of sale, so there is no court case that holds the money. The lender keeps what it is owed plus its costs and must pay any surplus to you or your heirs, unless the mortgage says otherwise. It must also mail you an itemized accounting of the sale money, including any surplus, within 60 days after it receives the funds.

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

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How to claim surplus funds in Massachusetts

  1. The lender holds the surplus

    The mortgage holder that ran the auction keeps the sale money. After paying itself the debt and its costs from your default, it must turn any surplus over to you, your heirs or successors, unless your mortgage says otherwise.

    M.G.L. c. 183, § 27

  2. Watch for the itemized accounting

    Within 60 days after the lender receives the sale money

    The lender must send you a written, itemized accounting of the sale price, legal fees, auctioneer fees, publication costs and any surplus due to you. This deadline is put on hold if the sale is tied up in further court proceedings.

    M.G.L. c. 183, § 27

  3. Ask for the money in writing

    Right after the 60-day period

    There is no state claim form. Send a dated letter to the lender and its foreclosure attorney asking for the accounting and payment of any surplus, give your current address, and keep a copy and proof of mailing.

  4. Later liens may be paid first

    If you had a second mortgage, home equity line or other recorded lien, that lien holder may also claim the surplus. If there is a disagreement over who is owed what, a court may have to decide, so get free legal help before you sign any release.

  5. Unclaimed surplus and fee limits

    Often after 3 years

    Surplus that no one claims can be turned over to the state Treasurer's unclaimed property program, and money paid into a court is presumed abandoned after 3 years. You can claim it from the state yourself. A fee agreement to recover property is unenforceable if made within 24 months after the state gets it, and after that it must be in writing and the fee cannot exceed 10 percent.

    M.G.L. c. 200A, §§ 6, 13

  6. Surplus after a tax title foreclosure

    If you lost the home for unpaid property taxes, the rules are different: the town or company must sell or appraise the home and pay you the excess equity. See the Massachusetts property tax foreclosure page.

    M.G.L. c. 60, § 64A

What Massachusetts law says about leftover sale money

Surplus after a mortgage foreclosure sale

The lender keeps what it is owed plus its costs and must turn over any surplus to you or your heirs, unless the mortgage says otherwise. It must also send you a written, itemized accounting of the sale proceeds, including any surplus, within 60 days after it receives the money. If the accounting does not arrive, ask for it in writing.

M.G.L. c. 183, § 27

Common questions in Massachusetts

My Massachusetts lender never sent the 60-day accounting. What can I do?

Send the lender and its foreclosure attorney a written request that cites M.G.L. chapter 183, section 27 and asks for the itemized accounting and any surplus. Keep proof of mailing. If you still get nothing, contact legal aid or a lawyer about your options.

Can my Massachusetts mortgage change who gets the surplus?

The statute pays the surplus to the borrower or heirs 'unless otherwise stated in the mortgage,' so read your mortgage for any surplus clause. Most homeowners will still be owed any money left after the debt, costs and other liens. A lawyer can tell you whether a clause in your mortgage changes that.

Is there a fee cap for companies that find unclaimed Massachusetts surplus?

Only once the money has been turned over to the state. An agreement made within 24 months after that cannot be enforced, and a later agreement must be in writing and cannot charge more than 10 percent. Before the money reaches the state, no specific cap was found, so ask the lender directly and never sign over a share of your surplus without free legal advice.

Step by step

More on foreclosure in Massachusetts

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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 Massachusetts

Property tax foreclosure Claim surplus funds (this page)

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Sources for this page

  1. M.G.L. c. 60, § 1 (definition of excess equity)
  2. M.G.L. c. 60, § 16 (demand for payment)
  3. M.G.L. c. 60, § 53 (taking for taxes; notice)
  4. M.G.L. c. 60, § 62 (redemption)
  5. M.G.L. c. 60, § 62A (payment agreements)
  6. M.G.L. c. 60, § 64A (sale or retention after foreclosure; excess equity)
  7. M.G.L. c. 60, § 65 (petition to foreclose rights of redemption)
  8. M.G.L. c. 59, § 57 (tax bills; due date; interest)
  9. M.G.L. c. 200A, § 6 (money paid into court)
  10. M.G.L. c. 200A, § 13 (agreements to recover property)
  11. Land Court, Frequently asked questions about tax lien foreclosure cases
  12. Division of Local Services, Ask DLS: Tax Title Reform, Part 2
  13. Division of Local Services, Ask DLS: Tax Title Reform, Part 3
  14. M.G.L. c. 244, § 14, Foreclosure under power of sale
  15. M.G.L. c. 244, § 17A, Limitation of actions
  16. M.G.L. c. 244, § 17B, Notice of intention to foreclose
  17. M.G.L. c. 244, § 18, Persons authorized to redeem
  18. M.G.L. c. 244, § 35A, Right to cure a default
  19. M.G.L. c. 244, § 35B, Good faith effort to avoid foreclosure
  20. M.G.L. c. 244, § 35C, Creditor actions in violation of chapter
  21. M.G.L. c. 183, § 27, Disposition of proceeds of foreclosure sale
  22. Acts of 2024, Chapter 150 (Affordable Homes Act), foreclosure mediation pilot
  23. Mass.gov, Homeowner Assistance Fund (HAF)
  24. Mass. Attorney General, Frequently asked questions about mortgages and foreclosure
  25. Mass. Attorney General, Preventing Foreclosure
  26. Mass. Attorney General, Foreclosure-related scams
  27. 940 CMR 25.00, Foreclosure rescue transactions and foreclosure-related services
  28. Land Court Servicemembers Cases Resources
  29. Trial Court Law Libraries, Massachusetts law about mortgage foreclosure