The Maricopa County Treasurer website contains a list of individuals who are eligible to claim money called “excess proceeds” after a Trustees Sale of their real property. Excess proceeds exist when a property is sold at foreclosure and the money from the sale equals more than the debts collected from the sale. So if your home has been foreclosed on in the last couple years, you should check the list!
You might think that all money from a foreclosure sale goes to any and all lienholders, but that is not the case. If a home has two mortgages and the first mortgage forecloses on the home, then the money from the foreclosure sale goes to pay the first mortgage. Any foreclosure sale money exceeding the amount of the first mortgage can then be deposited with the County Treasurer pursuant to A.R.S. § 33-812. The second mortgage or home owners association may have priority claims to the money, but they must apply for it. If the lienholders do not apply for the money then it can be yours if you apply for it. Also, sometimes even if other lienholders apply for the excess proceeds they may only have a claim to part of the money leaving still a sizable piece to be claimed by you, the former property owner.
It is important to act quickly because after the County Treasurer holds the excess proceeds for two years, the excess proceeds are considered “abandoned” and claimed by the state. While an excess proceeds seems too good to be true, it is a reality that you may have claim to money sitting with the Maricopa County Treasurer. We request that you contact Timothy F. Coons at Udall Shumway PLC to set up a free consultation regarding your entitlement to these funds.