When a foreclosed property sells for more than the total owed on the loan and court-approved costs, the extra money is called surplus funds (or excess proceeds). In Cook County, those funds are not released to you automatically. You must file a petition in the Chancery Division, notify any interested parties, and obtain a signed court order that directs the Clerk or the Sheriff to issue the check. This guide explains eligibility, priority among competing claimants, where the money is held, and the step-by-step process to actually collect it.
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Surplus Funds After a Judicial Sale in Cook County: How to Claim What’s Yours
What are foreclosure surplus funds?
Surplus funds exist only after the court approves the Report of Sale and Distribution and confirms that the sale proceeds exceeded the judgment, interest, fees, and costs. The amount you see labeled “surplus” is a net number after those deductions. The court will not assume who should receive the money; it will wait for a motion or petition and decide based on the evidence and on lien priority. That is why timing, documentation, and service of notice matter more than anything else in this process.
Who gets paid first (priority, in plain English)
Illinois law applies a simple waterfall. Sale expenses and court-approved costs come off the top, followed by the foreclosing plaintiff’s judgment (typically the first mortgage). Any remaining funds are then available to junior lienholders in order of their recorded priority. Only if money still remains after valid liens are satisfied do former homeowners receive payment. Priority is about recorded rights, not who asks first, so a quiet junior lien can still outrank a former owner if the lien was properly perfected.
How to confirm that a surplus exists
The most reliable way is to read the Report of Sale and Distribution and the Order Approving Sale in the court file. If the report lists an excess or surplus line, you have a starting point. The order may also state where the money will sit—most commonly with the Clerk of the Circuit Court or, in some cases, with the Sheriff or a selling officer. Save clean copies of both documents. You will attach or cite them in your petition and bring them to court for the hearing.
Where the money is held
In Cook County, surplus funds are typically deposited with the Clerk of the Circuit Court or kept by the Cook County Sheriff (or the selling officer named in the order) until a turnover order is entered. Neither office can release payment without a judge’s written direction. After the order is delivered, processing usually takes a short administrative window before the check is ready.
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Step-by-step: asserting your claim
Start by identifying your capacity: former owner, junior lienholder, assignee of a claimant, or representative of an estate or entity. Prepare your petition using the Cook County form CCCH 0317 or a motion that includes the same substance. Explain your standing in one or two focused paragraphs, cite the surplus amount from the Report of Sale, and state where the funds are held. If you believe there are no higher-priority liens, say so and attach proof. If higher-priority liens exist but have been released or paid, attach the releases or payoff statements.
Serve your petition on all interested parties listed in the case—particularly the plaintiff and any junior lienholders. Follow the Chancery Division motion rules for notice and filing. Then place your petition on the motion call. On the hearing date, bring government identification for each payee, your exhibits, and a clean Proposed Order for Turnover of Surplus Funds that states the payee name(s), address, and the office that will issue the check. If another claimant appears, the court may set a brief schedule for proofs. If no one objects and your papers are complete, the order is often signed the same day.
What to bring and how to present it
Bring legible copies of the Report of Sale and the Order Approving Sale, along with your petition, exhibits, certificates of service, and a proposed turnover order. If you are a junior lienholder, include the recorded lien and a short accounting or payoff letter that shows the amount due as of the hearing date. If you are an assignee, include the assignment and proof of consideration. Keep your oral presentation short and factual. Judges appreciate a concise priority explanation and a proposed order that leaves nothing to guesswork.
Short checklist (for your folder)
Case caption and number
Report of Sale and Order Approving Sale
Government ID for each payee
Petition (CCCH 0317 or equivalent)
Exhibits proving standing and priority
Certificates of service / e-service receipts
Proposed Turnover Order with exact payee name and address
Timelines and what to expect
From filing to hearing, timing depends on the motion calendar and whether anyone contests your claim. Straightforward matters can be scheduled within a few weeks. Once the court signs the turnover order and you deliver it to the paying office, expect a short processing period before the check is issued. If there are competing claims, build in time for affidavits, short briefs, or a limited evidentiary hearing focused on priority and amounts.
Special situations that change the analysis
Condominium and HOA assessments can outrank a former owner up to the lawful amount if the lien was properly recorded. Federal tax liens introduce federal priority rules and may require notice to the United States Attorney. If anyone is in bankruptcy, the surplus can become estate property and require coordination with a trustee or relief from the automatic stay. Assignments are closely scrutinized; courts will look for a valid written assignment and proof of payment, especially if the assignee is a “finder” charging a steep fee.
Common mistakes—and how to avoid them
Many petitions fail because notice was incomplete or because the proposed order named the wrong payee or address. Others assume the former owner automatically takes the full surplus when a junior lien was quietly recorded years earlier. Avoid thin exhibits: if you claim a lien, show it; if you rely on a release or payoff, attach it. Finally, be cautious with surplus-fund solicitations. You can file the petition yourself or work with counsel under a transparent fee agreement rather than surrendering a large percentage to a locating service.
Simple courtroom language you can use
When your case is called, a clear and efficient statement helps: “Your Honor, [Name] on our petition for turnover of surplus funds in case [number]. The Report of Sale shows a surplus of $[amount] held by the [Clerk/Sheriff]. We served all interested parties, and no higher-priority claims are pending. Our proposed order directs payment to [payee].” If another claimant appears, you can ask for a short briefing schedule limited to priority and amounts.
Sharp in law. Connected in your deal.
Private money lending counsel—structured fast, documented right, and closed with clean title
FAQs
Do I receive surplus funds automatically?
No. You must file a petition, give proper notice, and obtain a signed turnover order.
Can surplus funds be split among several people?
Yes. The court can allocate among co-owners or competing lienholders according to priority and proof.
What if I changed my address?
Update the address in your petition and ensure the payee name on the order matches the identification you will present when collecting the check.
Do I need a lawyer?
You can proceed without one, but disputes involving federal liens, bankruptcy, or complex priority questions are easier to navigate with counsel.
Practical example (to anchor the numbers)
Assume the judgment and approved costs total $210,000 and the high bid at sale is $225,000. The report shows a $15,000 surplus. If a recorded second mortgage stands at $8,000, that lien is paid first from the surplus, leaving $7,000. If no other valid junior liens exist, the former owner receives the remainder. If an HOA recorded a lien for assessments, that lien would be paid before the owner’s share, up to the lawful amount shown in the ledger.
Final notes and next steps
Surplus funds are an opportunity, but they follow courtroom rules. Read the Report of Sale carefully, document your standing and priority, serve every interested party, and bring a precise proposed order. If you face competing claims or questions about federal liens or bankruptcy, consider getting legal advice tailored to your case before you set your motion.
