How do I claim surplus funds from a foreclosure in New York?

Step-by-Step Guide to Claiming Surplus Funds in New York

1. Verify Eligibility

• Surplus funds occur when the auction sale price exceeds the debt owed and foreclosure costs osc.state.ny.us+15courts.state.ny.us+15chemungcountyny.gov+15.

• Under New York Real Property Tax Law § 1197, anyone with a right, title, lien, or redemption interest just before foreclosure may file a claim nysba.org+3law.justia.com+3sullivanny.gov+3.

2. Locate the Surplus

• After the foreclosure sale, a court-appointed Referee calculates any surplus and deposits it with the County Clerk or Department of Finance courts.state.ny.us+13newyorkrealestatelawyersblog.com+13courts.state.ny.us+13.

3. Wait the Minimum Timeframe

• For residential properties, surplus remains claimable for at least 3 years after the court’s confirmation of sale law.justia.com.

4. Request a Surplus Proceeding

• Ensure the Referee’s report is submitted to the County Clerk.

• Submit forms such as the Notice of Appearance/Notice of Claim or Certificate of No Exceptions, typically with a small fee (around $10) osc.state.ny.us+8ww2.nycourts.gov+8courts.state.ny.us+8.

• Mail the request to the appropriate County Clerk (e.g., Kings County instructions) ww2.nycourts.gov+1courts.state.ny.us+1.

5. File a Claim or Motion

• Prepare legal paperwork including:

  • Motion for surplus distribution

  • Notice of Appearance / Claim

  • Affidavit in support

  • Proposed Order directing surplus distribution sullivanny.gov+6law.justia.com+6nysba.org+6courts.state.ny.us+3courts.state.ny.us+3newyorkrealestatelawyersblog.com+3.

• In some counties, forms are available via the NY Courts website.

6. Notify Other Liens or Creditors

• The court may require that you serve notice to creditors with superior or equal liens in the foreclosure action courts.state.ny.us+3courts.state.ny.us+3courts.state.ny.us+3newyorkrealestatelawyersblog.com+1barclaydamon.com+1.

7. Obtain Court Order

• If everything is in order, the court issues an Order Confirming Surplus Distribution.

• Surplus is then released to you via the County Clerk or treasurer.

8. Consider Legal Assistance

• While self-representation is allowed, retaining a lawyer or experienced surplus recovery agent can streamline the process and ensure all claims are properly prioritized bhpp.com+12newyorkrealestatelawyersblog.com+12chemungcountyny.gov+12.

✅ Summary Table