Disclaimer: I am not a lawyer and this is not legal advice. This article explains general Georgia procedures and statutes so you can understand the steps and talk with a qualified attorney or your county court clerk.
Detailed answer — How to pursue surplus funds after a foreclosure in Georgia
When a foreclosed property sells for more than the debt, costs, and senior liens, the leftover money is called surplus proceeds. Under Georgia law, those proceeds belong to whoever has the legal right to them — typically the former owner (or that person’s estate) or any junior lienholders with valid claims. To get those funds, you usually must ask the court that handled the foreclosure to determine who is entitled to the surplus and to order the funds paid out.
Relevant Georgia law
Georgia statutes govern distributions from foreclosure sales and how claims against sale proceeds are handled. See provisions of the Official Code of Georgia Annotated related to foreclosure sale proceeds and the duties of the foreclosing party and receivers/clerks. For reference, search the Georgia Code for the foreclosure/distribution provisions on the Georgia General Assembly website: https://www.legis.ga.gov/ (search for sections on foreclosure and proceeds).
Typical steps you should follow
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Confirm whether surplus exists and where it is held.
Start by getting the foreclosure sale documents. Depending on whether the foreclosure was nonjudicial (by power of sale under a security deed) or judicial, the sale paperwork will be with the foreclosing trustee, the county sheriff, or the court clerk. You need the sale price, the payoff numbers applied by the foreclosing party, and any receipts showing funds were deposited. Contact the county superior court clerk and (if applicable) the sheriff’s office for copies.
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Calculate the likely surplus.
Compare the sale price to (a) the outstanding principal, interest, fees owed to the foreclosing lender, (b) amounts paid to senior lienholders, and (c) the sale costs (advertising, trustee fees, sheriff costs). Any amount left over is the surplus. Ask the foreclosing party or clerk for an accounting or accounting entry showing the distribution.
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Identify who has a legal claim to the surplus.
Common claimants include the former owner (or the owner’s estate), heirs or beneficiaries (if the owner is deceased), and junior lienholders or judgment creditors who properly recorded liens before the sale. If your mom is alive and you act on her behalf, you need authority (a power of attorney or written authorization). If she is deceased, the personal representative (executor or administrator) of her probate estate is usually the proper claimant.
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Gather documentation.
Prepare documents that prove your right to the funds: deed showing title, ID and relationship to the former owner, death certificate (if applicable), will and letters testamentary/letters of administration (if you are the estate representative), payoff statements, foreclosure sale documents, and any recorded liens. If you are an heir but not the personal representative, you will likely need to open probate or obtain appointment to claim the money.
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File a petition or motion in the proper court.
File a petition or motion in the superior court for the county where the foreclosure occurred (or in the court that handled a judicial foreclosure). The pleading is often titled something like “Petition to Determine Right to Surplus Proceeds,” “Claim for Surplus Funds,” or an interpleader if multiple parties claim the funds. Describe the foreclosure, show the surplus amount (or that funds are being held), and state why you are entitled to the funds. Attach supporting documents and a proposed order directing payment to you or your client.
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Serve notice on all interested parties.
Serve the foreclosing lender, the purchaser at the sale (if any), any junior lienholders, and other claimants. Georgia courts require that interested parties get notice so they can contest the claim. The court will set a hearing if there is any dispute.
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Attend the hearing and provide evidence.
Be prepared to prove your claim with documentation and, if required, witness testimony. If the court finds you have the clear right to the funds, it will enter an order directing the clerk, sheriff, or holder of the funds to disburse them.
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If you are not the personal representative, consider opening a probate estate.
If your mother is deceased and no one has been appointed to administer her estate, you generally must open probate and be appointed personal representative before the court will release surplus funds to you. Contact the probate court in the county where the decedent lived or where the property was located for guidance on obtaining letters.
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If other parties contest, be ready for litigation or negotiated settlement.
A contested surplus claim can lead to litigation. The court will weigh priorities: senior liens and valid recorded claims are paid before junior claimants and the former owner. If multiple claimants have plausible claims, the court may divide the proceeds according to priorities or order an interpleader.
Where to file and who to contact
File your petition in the Superior Court of the county where the property was located or where the foreclosure was processed. Contact the county superior court clerk for filing fees, local forms, and any local rules. Georgia Courts resources: https://www.georgiacourts.gov/
Timing and urgency
Act quickly. Although specific time limits depend on the facts and the type of foreclosure, delays can make it harder to prove your claim or give other claimants time to act. If you suspect a surplus exists, start by getting written confirmation from the clerk or foreclosing party and then file your petition as soon as practicable.
Helpful Hints
- Start at the county clerk’s office and ask for the foreclosure file and any accounting of sale proceeds.
- If your mother is deceased, get a certified copy of the death certificate and either letters testamentary/administration or be prepared to open probate.
- Collect a copy of the foreclosure deed and the advertisement/notice of sale to show the sale amount and date.
- Get a payoff statement or written accounting from the lender to show how sale proceeds were applied.
- If multiple family members want the funds,sort out who has legal authority; simply being a child is not enough unless you are the appointed representative.
- Consider a short consult with a Georgia attorney who handles foreclosure or probate matters. Many offer limited-scope help (document review or a one-hour consultation).
- Ask the clerk about typical forms used in your county: some counties have standard “claim for surplus” forms or local rules for appearance and service.
- If you cannot afford an attorney, contact local legal aid or the State Bar of Georgia’s lawyer referral resources for guidance: https://www.gabar.org/
For statutory guidance, search the Official Code of Georgia Annotated on the Georgia General Assembly website (https://www.legis.ga.gov/) for sections covering foreclosure sale proceeds and distributions. If you plan to file a petition, a short consultation with a Georgia attorney will help ensure your pleadings use the correct local form and statutory citations and that you serve all necessary parties.