Surplus Funds Recovery in Tennessee
If your property was foreclosed in Tennessee 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.
Tennessee allows 1 year to claim surplus funds from a trustee sale. After that, funds may be considered abandoned.
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Check My Eligibility FreeHow Surplus Funds Work in Tennessee
Tennessee uses non-judicial (power of sale) foreclosure. This means foreclosures can happen outside the court system, often moving faster than judicial states.
Under Tennessee Code § 35-5-110, 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.
Tennessee is a non-judicial foreclosure state with a relatively fast process. Shelby County (Memphis) and Davidson County (Nashville) have the highest volumes. Nashville area growth has increased property values and potential surplus amounts.
How to File a Surplus Funds Claim in Tennessee
Contact the trustee or substitute trustee who conducted the sale
File a petition with the chancery or circuit court in the county where the sale occurred
Provide proof of identity, ownership, and entitlement to the surplus
The court reviews all claims and determines priority
Surplus 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 Tennessee to file your claim. You only pay when we recover your funds.
Top Tennessee Counties for Surplus Funds
These Tennessee counties have the highest foreclosure volumes and are most likely to have unclaimed surplus funds:
Frequently Asked Questions — Tennessee
Tennessee 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 Tennessee typically range from $5,000–$18,000, 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 Tennessee Code § 35-5-110. 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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