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Surplus Funds Attorney
Collecting Surplus Funds
In North Carolina, when a property goes through the foreclosure process and is sold, any remaining funds after satisfying all debts are known as surplus funds. These funds are belong to the lawful owner of the property prior to the foreclosure. While identifying the owner is straightforward in some cases, it can be complex in others.
What Happens to the Surplus Funds? When there is uncertainty surrounding the rightful owner of the surplus funds, North Carolina law mandates that the special trustee overseeing the foreclosure deposit these funds with the clerk of court in the county where the foreclosure took place. This procedure is regulated by North Carolina General Statute 45-21.31
How to Claim Surplus Funds? To recover these surplus funds, you must file a formal petition for collection of the surplus funds with the clerk’s office. Once your petition for surplus funds is filed, you must notify all other potential claimants and schedule a hearing before the clerk. At this hearing, you must effectively present your claim to persuade the clerk to release the funds to you.
The Complexity of the Process: The entire process of petitioning for surplus funds can be intricate, confusing, and time-intensive. It is recommended by many clerks of court to consult with an experienced surplus funds attorney before proceeding.
Need Expert Guidance? If you find yourself entangled in this complex process and would like expert advice, we offer a free 30-minute consultation with an experienced North Carolina surplus funds lawyer. Click the links below for additional resources or to schedule your consultation today.