How to claim foreclosure surplus funds in Nevada

How to claim surplus funds in Nevada

1. The trustee pays out the sale money in order

   After the sale

   Sale proceeds pay first the costs and fees of the sale and related expenses, then the loan being foreclosed, then junior mortgages and liens in order of priority. Any balance goes to you, the debtor, or your successor.

   NRS 40.462(2)

2. Ask the trustee about the surplus

   As soon as possible after the sale

   Your right to the balance vests at the time of the sale. Write to the trustee named in your Notice of Sale, ask whether there is a surplus and how much, and give a current mailing address.

   NRS 40.462(1); NRS 107.030(7)

3. Junior lienholders must prove their claims

   15 days after the trustee's written demand

   A junior lienholder that claims part of the money must give the trustee proof of its debt and lien within 15 days of a written demand, or it gives up its right to the proceeds. If claims conflict, the trustee can hold the disputed money until a court decides, for example in an interpleader case.

   NRS 40.462(2), (3)

4. Surplus after an HOA sale

   After the association's sale

   If your homeowners association foreclosed, the money left after sale costs, the association's lien and other liens also goes to the unit owner.

   NRS 116.31164

5. Rules for surplus recovery agreements and fees

   No agreement can be signed until 30 days after the sale

   An agreement to pay someone to help recover your surplus must be in writing, signed by you and notarized, and it is void if signed less than 30 days after the sale. A fee over $2,500, not counting attorney's fees and costs, is presumed unreasonable, and a court will not enforce an unreasonable fee. You never have to use a company.

   NRS 40.463

6. Unclaimed money goes to the State Treasurer

   Money held by a court or government becomes unclaimed property 1 year after it is payable

   If surplus is not claimed, it can be reported to the Nevada State Treasurer's unclaimed property program, where you can claim it. Any agreement to pay someone to recover property that has been presumed abandoned is void until 24 months after it reaches the state, and fees are capped at 10 or 20 percent after that.

   NRS 120A.500; NRS 120A.740

7. Surplus after a property tax sale

   Excess proceeds from a county tax sale must be claimed from the county treasurer within 1 year after the sale deed is recorded. See our Nevada property tax foreclosure page.

   NRS 361.610

What Nevada law says about leftover sale money

Common questions in Nevada