Surplus Funds Recovery in Alabama
If your property was foreclosed in Alabama and sold at auction for more than what was owed, you may be entitled to the surplus. Most former homeowners never find out this money exists.
Alabama allows up to 1 year to claim surplus funds from a foreclosure sale before funds may escheat to the state.
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Check My Eligibility FreeHow Surplus Funds Work in Alabama
Alabama uses non-judicial (power of sale) foreclosure. This means foreclosures can happen outside the court system, often moving faster than judicial states.
Under Alabama Code § 6-5-248, when a foreclosed property sells at auction for more than the outstanding debt (including mortgage, liens, fees, and costs), the excess amount — known as surplus funds — legally belongs to the former property owner.
Alabama is a non-judicial foreclosure state with relatively low property values. Most foreclosures occur in the Birmingham (Jefferson County) and Mobile metro areas.
How to File a Surplus Funds Claim in Alabama
Contact the foreclosing attorney or trustee who conducted the sale
File a petition with the circuit court in the county where the property was sold
Provide proof of identity, ownership, and entitlement to the surplus
The court reviews the claim and determines the rightful claimant
Funds are disbursed per the court order
Sounds complicated? We handle all of this for you. Our team researches your case, prepares the paperwork, and works with licensed attorneys in Alabama to file your claim. You only pay when we recover your funds.
Top Alabama Counties for Surplus Funds
These Alabama counties have the highest foreclosure volumes and are most likely to have unclaimed surplus funds:
Frequently Asked Questions — Alabama
Alabama allows 1 year to file a claim for surplus funds from a foreclosure sale. After this deadline, funds may be permanently forfeited or transferred to the state unclaimed property division.
Surplus amounts in Alabama typically range from $5,000–$15,000, depending on the property value, auction price, and outstanding debt. Some cases can be significantly higher.
Yes, you can file yourself. The process involves contacting the trustee or county, providing proof of ownership and identity, and navigating the legal requirements under Alabama Code § 6-5-248. Many claims are denied due to paperwork errors, which is why most people work with a recovery service.
We work on a contingency basis — no upfront fees. Our standard fee is 25% of the recovered amount. If you use our self-service portal, you save an additional 5%. If we don't recover anything, you owe nothing.
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