Surplus funds, also known as excess proceeds, refer to the money remaining after the sale of an asset, typically real estate, when the sale amount exceeds the debts or obligations tied to that asset. For instance, when a property is sold at a foreclosure auction, the money first goes to pay off the outstanding mortgage, liens, and any associated costs. If there is any money left after these debts are settled, it is considered surplus funds.
For further details on surplus funds and how to recover them, please visit Authority Asset Recovery LLC, call us at (470) 480-4092, or email us at info@authorityassetrecovery.com.
How Are Surplus Funds Generated?
Surplus funds are generated in various scenarios, including:
- Foreclosure Sales: When a property is sold for more than the amount owed on the mortgage.
- Tax Sales: When a property is sold by the government for unpaid taxes and the sale amount exceeds the tax debt.
- Bankruptcy: When assets are liquidated, and the sale proceeds surpass the debts owed by the bankrupt entity.
Who is Entitled to Surplus Funds?
The rightful owner of the surplus funds is generally the original property owner or their legal heirs. However, claiming these funds can sometimes be complex, involving legal processes to establish the right to the funds and to navigate through any competing claims.
Why Are Surplus Funds Important?
Surplus funds are important because they represent money that legally belongs to individuals or entities after the settlement of debts. Recovering these funds can provide financial relief or capital for future investments.
More Info
For more information on surplus funds and assistance with recovery, visit Authority Asset Recovery LLC or call (470) 480-4092, or via email at info@authorityassetrecovery.com.