What happens when a home sells at a tax sale for more than was owed, and how the money left over gets back to the family. The people and numbers here are illustrative; the steps are the ones we follow.
Maria owned a paid-off house worth about $95,000. After a hard few years she fell behind on her property taxes: $6,400 including interest, penalties and costs. The county sold the house at a tax sale, and the winning bid was $54,400.
The taxes and costs were paid from the sale price. The other $48,000 is the surplus, also called excess proceeds or returned equity. By law it belongs to Maria, not to the county or the buyer.
Nobody sends Maria a check. The surplus is held, and it is paid out only when the right person files a claim and proves they are entitled to it. Maria has moved, any notice went to the old house, and she doesn't know the money exists. There is a deadline: if no one claims in time, the money can be lost for good.
Surplus funds are listed in public records. We match each listing to the former owner and send a letter with the amount and a short personal code. Maria enters her code at returnedequity.com/start and sees the amount, the property and the deadline.
Maria fills in her name, email and mailing address, reads our agreement and signs it online. There is nothing to pay. Our fee is 10% of what is actually paid to her, and only if she is paid.
Maria gets an update at each step. If questions come back, we answer them.
The money is paid to Maria. Only after she receives it does she pay our fee.
| Surplus paid out | $48,000 |
| Our fee (10%) | −$4,800 |
| Maria keeps | $43,200 |
If the claim had failed, Maria would have owed us nothing.
The money then belongs to the estate or the heirs. The steps are the same, plus documents showing who is entitled. Heirs and estate representatives can sign up with the same code.
Illustrative example. Amounts, deadlines and rules vary by state and county; whether any money is owed, and to whom, is decided by the agency holding it.