California Surplus Funds Laws
How mortgage foreclosure surplus, tax sale surplus and unclaimed funds work in California.
Mortgage foreclosure surplus
Cal. Civ. Code §§ 2924j and 2924k govern notice, claims, and distribution of a nonjudicial trustee-sale surplus. Section 2924k orders payment of sale costs, the secured debt, junior lienholders by priority, then the trustor or successor in interest. Under Cal. Civ. Code § 2924j(a), the trustee sends notice to recorded interested persons within 30 days after executing the trustee’s deed; a claimant has 30 days after that notice is sent to submit a written claim to the trustee. If the trustee deposits disputed funds with the court, a claimant has 30 days after the court-deposit notice to submit a claim there (§ 2924j(d)). These are surplus procedures, separate from property redemption.
Tax sale surplus
Cal. Rev. & Tax. Code § 4675 governs excess proceeds from a sale of tax-defaulted property. Recorded lienholders and persons with title immediately before the tax deed are parties of interest, in statutory priority. Section 4676 addresses distribution of unclaimed excess. A party of interest must file the excess-proceeds claim before one year expires after the tax collector’s deed is recorded; a timely postmark counts (Cal. Rev. & Tax. Code § 4675(a)). A person denied a claim may seek review within 90 days after the decision (§ 4675(g)). The tax-sale redemption period is separate.
Unclaimed funds
California Unclaimed Property Law, Cal. Code Civ. Proc. §§ 1500–1582; an owner’s claim to property delivered to the Controller is governed by § 1540. Section 1540 sets no fixed deadline for an owner to file an initial claim with the Controller. The Controller must consider a complete claim within 180 days; a denial has separate review procedures under § 1541.
Fee and practice notes
No fee cap reported. For mortgage foreclosure surplus, work with an attorney and support them with leads.
Statute text
Links to the statutes referenced in our research. These may be third-party copies of older code editions, so check the current official code before relying on them.
