Quick answer

When a property in Illinois is sold at a tax sale for more than the total of taxes, fees, interest, and sale costs, the amount left over is called the surplus (or overage). The surplus generally belongs to the person or entity with the highest priority legal interest in the property (usually the prior owner, then mortgagees or other lienholders). To recover surplus funds you must locate the funds (county collector, county clerk, or circuit court), file a formal claim or petition, provide proof of your interest, and follow the county’s distribution procedures. If there are competing claims, a court may decide who gets the money.

Detailed answer — step‑by‑step process under Illinois law

Below is a practical, stepwise explanation of how surplus recovery typically works in Illinois. Procedures and exact offices involved can vary by county, so treat this as a general roadmap.

1. Understand what a surplus is and when one arises

A surplus arises when a tax sale (or later sale to a third party after issuance of a tax deed) produces proceeds that exceed the taxes, penalties, interest, and administrative costs charged against the parcel. The sale produces a certificate of purchase or, after completion of statutory steps, a tax deed. If a surplus exists, Illinois law directs that the surplus be paid to the rightful claimant(s) rather than to the purchaser.

2. Identify where the surplus is being held

Who holds the surplus depends on the type of sale and where the matter is in the process:

• Tax sale not yet converted to a deed — contact the county collector or treasurer’s office.
• After tax deed or judicial sale — contact the county circuit clerk or the court handling the tax deed/judicial sale.
• For sheriff’s or court-ordered judicial sales, the circuit clerk or sheriff’s office often holds the surplus until distribution.

3. Check priority and who can claim the surplus

Priority for surplus typically runs to people with legal interests in the property at the time of sale, in roughly this order:

• The former owner (who paid nothing at sale but lost the property);
• Holders of recorded mortgages and liens that survived the tax sale (priority depends on the lien type and timing);
• Judgment creditors or other lienholders who can prove a valid claim.

If you are a former owner, mortgagee, or lienholder, you will need to establish your legal interest in the property to the office holding the surplus or to the court.

4. Gather proof and documentation

Common documents you will need:

• Photo ID (driver’s license, passport);
• Deed, mortgage, or lien documents showing your recorded interest;
• Tax sale or court sale docket information (parcel number, case or sale number);
• Purchase contract or other proof of your interest if you acquired rights by assignment; and
• Any court orders or notices related to the tax sale or tax deed.

5. File the claim or petition

How you claim the surplus depends on local practice and the nature of the sale:

• If the county collector or treasurer is holding the funds, they will have a surplus-claim procedure and claim form. Complete the form and attach your proof of interest.
• If the circuit clerk or court holds the funds (for example after a judicial sale), you may need to file a petition in the county court asking for distribution of surplus proceeds and giving notice to interested parties. The court will direct the clerk (or a special representative) to pay out funds after resolving claims.

6. Service and notice to other parties

If you file a petition in court, you will likely need to give notice to other interested parties (other lienholders, tax purchaser, etc.). The court will set deadlines for objections. If no one contests your claim, the clerk usually issues a payment order.

7. Court determination when claims conflict

If multiple claimants assert rights to the surplus, the court will determine priorities based on recorded interests, the timing of liens, and applicable law. The court may hold hearings and require evidence from each claimant before ordering distribution.

8. Receiving payment and possible holds or offsets

Once your claim is allowed, the county will issue a check or otherwise release funds to you; some counties charge administrative fees. Note that the county or court may hold funds if there are active liens, judgments, or other legal claims against you personally.

9. Unclaimed surplus and escheatment

If surplus funds go unclaimed for a long time, local rules govern what happens next. In some situations the county may retain the funds for a period and then transfer them according to state or local rules. Check with the county collector, clerk, or circuit clerk for your county’s procedures.

Relevant Illinois law and where to read it

Many tax-sale rules are in the Illinois Property Tax Code (35 ILCS 200) and in rules governing judicial sales and sheriff’s sales. For general statutory text and to find the exact provisions that apply to your situation, see the Illinois Compiled Statutes on the Illinois General Assembly site: https://www.ilga.gov/legislation/ilcs/ilcs.asp. County procedure manuals, county collector or clerk websites, and the circuit court clerk’s office provide the practical steps for filing surplus claims in that county.

Helpful hints

• Start at the county level. Call the county collector, county clerk, or circuit clerk where the property is located and ask whether surplus funds exist and which office is holding them. County staff can often point you to the right form or the court file number.
• Get the parcel number and sale reference. Having the property parcel (PIN) and the tax sale or case number speeds the search.
• Collect recorded documents. Your deed, mortgage, assignment, or lien documents are key proof. Obtain certified copies from the county recorder if needed.
• File promptly. Even if you don’t know exact deadlines, file your claim quickly. Delay can complicate recovery and allow others to assert priority.
• Expect competing claims. Be prepared to prove your priority. Lender claims and recorded liens commonly conflict with owner claims.
• Ask about fees and holdbacks. Counties sometimes deduct administrative costs. If the funds are small, recovery paperwork may exceed the funds’ value.
• Consider limited-scope legal help. If claims are contested, a short consultation with an attorney who regularly handles tax-sales or sheriff’s-sale surplus claims in Illinois can save time and risks.
• Document communications. Keep written records of calls, emails, filings, and receipts from county offices and the court.