Available 7 Days a Week 6:00 AM – 8:00 PM(516) 314-1343
Thomas A. Sirianni, Esq.
Practice Area

Foreclosure Sold for More Than Was Owed? Claim Your Surplus.

When a New York foreclosure sale brings more than the judgment, interest, and costs, the excess — surplus money — belongs to the former owner and junior lienholders, in priority order. But the surplus doesn't release automatically. It sits with the County Treasurer until someone files a Notice of Claim, prosecutes a reference, and moves for confirmation under RPAPL §1361. As a Long Island surplus money attorney, I recover excess foreclosure-sale funds for former owners, heirs, and junior creditors in Nassau and Suffolk County.

Cases I Handle in Surplus Money Proceedings

Identifying surplus funds after foreclosure sale
Notice of claim filings under RPAPL §1361
Reference and confirmation proceedings
Junior lien priority disputes
Distribution to former owners and heirs
Coordination with bankruptcy claims
Title research and chain-of-claim review
Court accounting and final distribution orders

Are You Dealing With Any of These Situations?

Your home was foreclosed and you've heard there may be leftover money
You're the heir of a former owner whose property was sold at foreclosure
You're a junior lienholder — second mortgage, judgment, HOA — from the foreclosed property
You received a notice from the referee or County Treasurer about surplus funds
Another claimant has moved to collect surplus and you need to assert priority

Relevant New York Laws

RPAPL §1361 — The principal statute governing the disposition of surplus money in New York foreclosure actions. Establishes the Notice of Claim procedure, the appointment of a referee to determine priorities, the right to a hearing, and the motion to confirm and direct distribution from the County Treasurer.

RPAPL Article 13 — The broader foreclosure framework, including the Report of Sale (§1355) that establishes whether surplus exists, and the referee's obligations on deposit and accounting. The Report of Sale is the starting point for every surplus money proceeding.

CPLR Article 52 — Governs the enforcement of money judgments, including the docketing requirements that determine whether a judgment creditor qualifies as a junior lienholder of record at the time of sale and can claim against the surplus.

NY County Law §115 — Establishes the County Treasurer as the custodian of surplus money in Nassau and Suffolk counties, the statutory interest accrual on funds held, and the procedures for release on court order.

Frequently Asked Questions About Surplus Money Proceedings

Surplus money is the amount by which the foreclosure sale price exceeds the judgment, interest, costs, and the referee's fees. The referee deposits the surplus with the County Treasurer or court, and it is distributed in priority order to junior lienholders and ultimately the former owner under RPAPL §1361.

After the sale, the referee files a Report of Sale showing the sale price and total owed. If the sale price was higher, surplus exists. Tom obtains the report, calculates the surplus, and confirms the deposit with the County Treasurer in Nassau or Suffolk County.

Junior lienholders of record at the time of sale — second mortgages, judgment creditors, HOA liens, IRS or state tax liens — claim in priority order. Any remaining surplus belongs to the former owner (and, if deceased, the estate). Heirs may need ancillary Surrogate's Court proceedings to claim.

Under RPAPL §1361, claimants file a Notice of Claim in the foreclosure action. The funds remain with the County Treasurer indefinitely until claimed, but a Motion to Confirm and Distribute must be brought to release them. Tom moves promptly to avoid junior-creditor competition and statutory interest reductions.

With the County Treasurer of the county where the property sat — Nassau County Treasurer in Mineola or Suffolk County Treasurer in Riverhead — or with the court, depending on the order. Funds earn modest statutory interest while on deposit.

Practically yes. The proceeding requires a Notice of Claim, service on the referee and all other lienholders of record, a Reference to determine priority, the referee's report, and a Motion to Confirm. Errors at any step can forfeit the claim or subordinate it to a junior interest.

The court appoints a referee to hear claims, determine priorities, and report to the court. The referee's report is then confirmed by motion and an order directs the County Treasurer to disburse. Most uncontested surplus matters resolve in 4 to 8 months from filing to payout.

Only lienholders of record at the time of sale, in priority order. General unsecured creditors cannot reach surplus unless they docketed a judgment before the sale. Once distributed to you, surplus funds become subject to general collection — protect them quickly with proper planning if you have outstanding judgments.

Ready to Discuss Your Case?

When you contact this office, you speak directly with Thomas A. Sirianni, Esq. — not a paralegal, not an intake service. Every conversation is confidential.

Call (516) 314-1343

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