Guide to Claiming Surplus Funds in NJ

Due to increased property values, homes are going to Sheriff Sale with value above what is owed. Surplus Funds are the excess money left after a Sheriff’s Sale. After any remaining debts have been paid and no other creditors come forward to claim them, they belong to the property owner(s).

After a Sheriff Sale, any creditors holding liens or judgments can file a claim for the surplus funds. If there are no such claims, or if the total of the liens and judgments is less than the surplus amount, the remaining funds will belong to the homeowner or their heirs. However, be aware that New Jersey requires heirs to go through the probate process and be appointed as Administrator or Executor before they are able to establish their claim to the funds.

If your property has been sold at a Sheriff’s Sale and there are surplus funds remaining, the money will be deposited into the Superior Court Trust Fund. New Jersey Court Rules 4:64-3 and 4:57-2 control these funds and their removal. The process can take 6-9 months, and the necessary steps are as follows:

• Prepare and submit a complete package to the Surplus Funds Unit to show who will be seeking the funds and requesting an Order to confirm the amount of funds available.
• Wait for processing to receive a “Verified Order” to confirm the amount of funds available.
• Complete the Motion Packet for the Court and submit it with the Verified Order. You must prove that you served all the people and companies named in the foreclosure complaint, so the packet MUST include all green cards from the certified mailings as proof of service.
• After the Court reviews the motion, if it is approved, an Order will be provided, which states that the funds can be issued.
• An application must be submitted to obtain a “Certified” and “Sealed” Order. A check will only be issued based upon a “Certified” and “Sealed” Order.
• Once the “Certified” and “Sealed” Order is received, it must be submitted to the Surplus Funds Unit with a request for the funds and a self-addressed stamped return envelope.

When filing for surplus funds, it may be in your best interest to contact an experienced New Jersey foreclosure attorney. If your property was sold at a Sheriff’s Sale and you have questions about obtaining Surplus Funds, don’t wait – contact the Law Office of Ira J. Metrick for help receiving surplus funds today.