Let's Breakdown Surplus Funds

There are times when homeowners may struggle to maintain mortgage payments or settle the outstanding property taxes they owe. In such cases, homeowners risk losing their homes through a tax sale, sheriff's sale, or mortgage foreclosure sale, where foreclosed properties are auctioned off to the highest bidder to cover the debt. 
Occasionally, a foreclosure sale may yield more money than necessary to clear the debt, resulting in excess funds. These surplus funds are subject to priority claims, allowing individuals or parties with superior rights to recover the money. 
The excess funds can be claimed by the former property owner at the time of the foreclosure sale, the holder of any security deed related to the property, or any other party with a lien or recorded equity interest in the property during the sale. 
Neither the lender nor the county can retain any funds beyond what is owed to them unless the surplus funds go unclaimed for a specific period. Depending on state laws, the previous property owner typically has a few months to a few years to claim surplus funds. 
If left unclaimed for an extended period, the funds may revert to the county or lender.