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How to claim foreclosure surplus funds in New York

In New York, money left after a mortgage foreclosure auction does not go to the lender. The referee pays it into court, and the county treasurer or, in New York City, the commissioner of finance holds it until a judge orders who gets it. Liens on the home at the time of sale are paid first in order of priority, and you must ask the court for the rest. Claiming it yourself is allowed and does not require a paid service.

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

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How to claim surplus funds in New York

  1. The referee pays the surplus into court

    Within 5 days after the referee receives it

    After the sale, the officer who ran it must pay all surplus money into court. The report of sale filed in your case shows the sale price and what was paid to the lender.

    N.Y. RPAPL § 1354(4)

  2. File a written notice of claim

    Before the report of sale is confirmed

    File a written notice with the clerk where the report of sale is filed, saying what you claim and giving your address. The clerk lists all notices of claim on a certificate that the party asking to confirm the sale must give the court.

    N.Y. RPAPL §§ 1355, 1361(1)

  3. The court decides who is paid first

    On the confirmation motion or within 3 months after it

    Any party or claimant can ask the court to decide how much each lienholder is owed and in what order, either itself or through a referee. Judgments and liens that existed on the home at the time of sale are paid before the former owner, and everyone who filed a claim gets notice of the hearing.

    N.Y. RPAPL § 1361(2), (3)

  4. Get a court order to withdraw the money

    After the court rules

    The county treasurer pays court-held money only on a certified copy of a court order naming who gets paid. Nassau County, for example, says it deducts a 2% fee under state law from every withdrawal.

    N.Y. RPAPL § 1361(2); CPLR 8010

  5. Unclaimed money goes to the State Comptroller

    After 3 years on deposit

    Court money left with the county treasurer or New York City commissioner of finance for 3 years is treated as abandoned and sent to the Office of the State Comptroller. The Comptroller says claiming is free and has no time limit once it holds the money.

    N.Y. Aband. Prop. Law § 600

  6. Be careful with surplus finders

    Any time

    Once money is with the Comptroller, a fee agreement to recover it is invalid if the fee is over 15%, and the agreement must say in bold type that you can get the money from the Comptroller for free. No New York law found caps fees while the money is still held by the court, so read any offer closely and talk to free legal services before you sign.

    N.Y. Aband. Prop. Law § 1416

  7. Surplus after a property tax foreclosure

    If your home was taken for unpaid property taxes rather than a mortgage, the 2024 tax foreclosure surplus law applies instead. See our New York property tax foreclosure page for how to claim that money.

    N.Y. RPTL § 1197

What New York law says about leftover sale money

Surplus after a mortgage foreclosure sale

If the home sells for more than what is owed plus costs, the referee or sheriff who ran the sale must pay the extra money into court within 5 days. Lienholders and the former owner can claim it. File a written notice of claim with the clerk where the report of sale is filed, stating what you claim and your address, before the report of sale is confirmed. The court then decides who gets paid and in what order. You can apply yourself, and free legal services groups help with surplus claims.

N.Y. RPAPL §§ 1354(4), 1361

Common questions in New York

Who gets paid from a New York surplus before I do?

The court pays liens that were on the home at the time of the sale in order of priority, such as a second mortgage, a home equity loan or a docketed judgment. Whatever is left after those claims belongs to the former owner. If a creditor's claim looks wrong, you can oppose it at the surplus hearing.

What if I missed the time to file a notice of claim in New York?

The notice of claim is filed before the report of sale is confirmed, but the statute also lets any party to the case move the court to decide who gets the surplus, and the owner must get notice of that hearing. If the money is still on deposit, contact free legal services or the court's help center about making a motion. After 3 years it goes to the State Comptroller, where you can still claim it for free.

Is there a fee to take surplus money out of court in New York?

County treasurers are allowed a small fee on money paid out of court; Nassau County says it is 2% and is deducted from each withdrawal whether or not the order mentions it. There is no fee to file a claim with the State Comptroller if the money has already been sent there. Ask the county treasurer how much interest has built up on the deposit.

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Also in New York

Property tax foreclosure Claim surplus funds (this page)

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Sources for this page

  1. N.Y. RPTL § 1110: Redemption period
  2. N.Y. RPTL § 1124: Publication of notice of foreclosure
  3. N.Y. RPTL § 1125: Personal notice of foreclosure
  4. N.Y. RPTL § 1136: Final judgment
  5. N.Y. RPTL § 1144: Homeowner warning notices
  6. N.Y. RPTL § 1184: Installment agreements
  7. N.Y. RPTL § 1194: Foreclosure of tax lien as in an action to foreclose a mortgage
  8. N.Y. RPTL § 1195: Definitions (surplus)
  9. N.Y. RPTL § 1196: Determination of existence and amount of surplus
  10. N.Y. RPTL § 1197: Claims for surplus
  11. N.Y. RPTL § 1104: Applicability of article
  12. N.Y. RPTL § 924-a: Interest on late taxes
  13. N.Y. RPAPL § 1355: Report of sale; confirmation
  14. N.Y. Abandoned Property Law § 600: Court funds
  15. N.Y. Abandoned Property Law § 1416: Limits on finder agreements
  16. Office of the State Comptroller: Unclaimed Funds
  17. Nassau County Treasurer: Court and Trust
  18. Chemung County: Claiming Foreclosure Surplus Funds
  19. NYC Department of Finance: Lien sales
  20. N.Y. RPAPL § 1304, Required prior notices (90-day notice)
  21. N.Y. RPAPL § 1303, Foreclosures; notice ('Help for Homeowners in Foreclosure')
  22. N.Y. RPAPL § 1320, Special summons requirement
  23. N.Y. CPLR 3408, Mandatory settlement conference in residential foreclosure actions
  24. N.Y. CPLR 320, Defendant's appearance
  25. N.Y. CPLR 213, Actions to be commenced within six years
  26. N.Y. RPAPL § 1302-a, Standing defense
  27. N.Y. RPAPL § 1341, Payment into court before or after judgment
  28. N.Y. RPAPL § 1351, Judgment of foreclosure and sale
  29. N.Y. RPAPL § 231, Notice of sale
  30. N.Y. RPAPL § 1354, Distribution of proceeds of sale
  31. N.Y. RPAPL § 1361, Application for surplus
  32. N.Y. RPAPL § 1371, Deficiency judgment
  33. N.Y. RPAPL § 713, Grounds where no landlord-tenant relationship exists
  34. N.Y. RPAPL § 749, Warrant of eviction
  35. N.Y. RPAPL § 756-a, Stay of proceedings involving title or possession (deed theft)
  36. N.Y. Real Property Law § 265-a, Home equity theft prevention
  37. N.Y. Real Property Law § 265-b, Distressed property consulting contracts
  38. Van Dyke v U.S. Bank, N.A., 2025 NY Slip Op 06537 (N.Y. Court of Appeals, Nov. 25, 2025) (FAPA applies retroactively)
  39. NY Courts: Foreclosure Information for Homeowners (settlement conferences)
  40. NY CourtHelp: Foreclosure Case Basics
  41. NY CourtHelp: Answering a Foreclosure Case
  42. NY CourtHelp: Foreclosure Settlement Conferences
  43. NY CourtHelp: Foreclosure Judgments
  44. NY CourtHelp: Deficiency Judgments After Foreclosure
  45. NY CourtHelp: 90 Day Pre-Foreclosure Notice
  46. NY CourtHelp: Common Defenses in a Foreclosure Case
  47. NYS Homes and Community Renewal: Homeowners (HAF closed)
  48. U.S. Treasury: Homeowner Assistance Fund (period of performance ended September 30, 2026)
  49. Governor Hochul: actions to combat deed theft (June 17, 2026)
  50. New York Attorney General: Homeowners (HOPP, Protect Our Homes)
  51. HomeownerHelpNY: Foreclosures