How to claim foreclosure surplus funds in New Jersey

How to claim surplus funds in New Jersey

1. The sheriff deposits the surplus with the court

   After the sheriff's sale

   Sale money first pays the amount the judgment ordered paid. Any surplus is deposited with the court and paid out only on application, as the court decides. Lienholders with lower priority than the foreclosed mortgage, such as a second mortgage or a judgment creditor, can also apply for it.

   N.J.S.A. 2A:50-37; R. 4:64-3

2. Find out if there is a surplus

   Soon after the sale

   Ask the county sheriff for the sale results and contact the Superior Court Trust Fund Unit with your docket number. The court lists the Trust Fund Unit at SCCOTrustFund.mailbox@njcourts.gov or 609-815-2900, extension 54200.

3. Get your proposed order verified first

   Before you file the motion

   Send a proposed form of order to the Trust Fund Unit so it can check the amount on deposit under Court Rule 4:57-2. Once the order is verified, you file a motion asking the court to sign it.

   R. 4:57-2

4. File a motion to withdraw the surplus

   Any time while the money is on deposit

   Parties named in the foreclosure generally file with the Office of Foreclosure; people who were not parties apply to the Chancery judge in the county where the home is. Your certification should give the property address, show you were named in the case, compute the amount due and list anyone else who may claim the money. Serve all parties. The court's motion packet lists a $50 filing fee payable to the Treasurer, State of New Jersey.

   R. 4:64-3

5. Unclaimed surplus goes to the state

   After 10 years with no activity

   Money left with the Superior Court for 10 years is presumed abandoned and sent to the State's Unclaimed Property Administration. The court publishes a list each year of balances about to be transferred. After transfer, you claim it from the state instead.

   N.J.S.A. 46:30B-41

6. Be careful with surplus recovery companies and their fees

   Before you sign anything

   You can file the motion yourself, and court charges on small surplus applications of $100 or less are capped at $5. Once money has gone to the state, any agreement to pay someone to recover it is void if made within 24 months after the transfer, and later fees are capped at 20 percent. Do not sign over your surplus without talking to legal aid first.

   N.J.S.A. 2A:50-37; N.J.S.A. 46:30B-106

7. Surplus after a tax sale foreclosure

   Money left over after a sheriff's sale in a tax lien foreclosure follows different rules, including a 10 percent fee to the certificate holder of up to $5,000. See our New Jersey property tax foreclosure page.

   N.J.S.A. 54:5-87(b)

What New Jersey law says about leftover sale money

Common questions in New Jersey