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Know Your Rights. Understand Your Options.
Our Frequently Asked Questions section is designed to give homeowners clear, honest answers about how the recovery and redemption process works.
Whether you’re trying to reclaim surplus funds or explore a second chance at ownership, these answers explain your rights, timelines, costs, and next steps — all in plain language.
The goal is simple: to help you understand your options and feel confident moving forward with CKIPS.
Understanding the basics
This section explains the foundation of what surplus funds and redemption mean, how they differ between states, and why understanding your options matters before time runs out.
Surplus funds (also called overage funds or excess proceeds) are the money left over after a tax-foreclosed property is sold and all debts owed to the county, city, or taxing authority have been paid.
Here’s how it works: When a property is sold at a tax auction, the winning bidder often pays more than the amount of unpaid taxes. The county first uses that money to cover:
- Past-due property taxes
- Penalties, interest, and court costs
- Recording or administrative fees
If there’s money left after those debts are cleared, that extra balance becomes surplus funds — and it rightfully belongs to the former owner or their legal heirs.
Recovering these funds isn’t automatic; the owner (or an authorized agent like CKIPS) must file a claim with the county or court that handled the sale. Each state sets its own deadline for claiming these funds — ranging from a few months to several years — before the money may be turned over to the state’s unclaimed property division.
In short, surplus funds are the equity that remained in your home after the tax sale — money that’s still yours, just waiting to be recovered.
Redemption is the legal right that allows a former homeowner to buy back their property after a tax sale by paying off the full amount owed — including taxes, interest, penalties, and fees — within a specific time period set by their state.
In simple terms, it gives the owner a second chance to keep their home even after it’s been sold at a tax foreclosure auction.
If the owner redeems the property:
- The tax sale is reversed, and the deed is restored to the owner.
- The buyer at the auction is refunded their purchase amount plus statutory interest.
- The county or court closes the case, marking the property as redeemed.
Each state sets its own redemption deadline (some are 6 months, others up to 2 years), so it’s crucial to check your timeline before it expires. Once the redemption period ends, the property can no longer be recovered — but the owner may still be eligible to claim any surplus funds left over from the sale.
Every claim is different, but on average, most recoveries are completed within 90 days from the time we receive your signed documents.
That said, because each county and state follows its own process, some claims can take longer. Certain courts or treasurer’s offices require additional verification, heirship affidavits, or waiting periods before releasing funds. For that reason, we ask clients to allow up to 180 days for completion as a comfortable cushion.
Here’s what typically happens during that time:
- Verification (1–2 weeks): We confirm eligibility and prepare your claim packet.
- Submission (1–3 weeks): The claim is filed with the appropriate county or court.
- Review & Approval (30–60 days): The agency validates ownership and ensures no competing claims.
- Release of Funds (up to 90 days): Once approved, payment is issued directly to CKIPS (for processing) or to you, depending on your agreement.
We stay in contact throughout the process and update you as soon as there’s progress — no guessing, no chasing paperwork, and no hidden delays.
Typical timeline: 60–90 days Maximum expected timeframe: 180 days (some counties require longer processing)
Tax Lien
- A tax lien is a legal claim the government places on a property when the owner fails to pay property taxes.
- In a “tax lien sale” the government (or county) sells the right to collect the unpaid tax debt (plus interest/penalties) to an investor, rather than selling the property itself.
- The investor pays the delinquent taxes (to the government) and receives a tax lien certificate. If the property‐owner redeems (pays) during a redemption period, the investor gets back the payment + interest. If not redeemed, the investor may be able to foreclose and eventually obtain the property (depending on state law).
- For the property owner: more time to redeem. For the investor: you’re basically purchasing debt (with interest) rather than immediately owning the property.
- Risks: longer time horizon, need to monitor redemption, possible foreclosure process and title issues.
Tax Deed
- A tax deed arises when the government forecloses on the property for unpaid taxes and then issues a deed (ownership) to the winning bidder at auction.
- In a “tax deed sale” you’re bidding for ownership of the property itself (subject to state laws on redemption, liens etc).
- For the property owner: often a shorter redemption window (if any) and the property may be sold outright. For the investor: potential for immediate ownership and control (rental/resale), but also more active management + risk (title issues, property condition, liens surviving the sale).
- Risks: you may take on property with substantial encumbrances or issues; you need to clear title; more capital/effort often required.
Hybrid / Mixed Systems
- Some states use a hybrid, or allow either a lien sale or deed sale, or transition from lien to deed if not redeemed.
- Example: Texas is officially a tax lien certificate state but operates a redeemable‐deed system (if owner doesn’t redeem, the investor may eventually obtain the deed).
A judicial foreclosure is handled through the court system. That means the lender must file a lawsuit against the borrower to foreclose on the property.
How it works:
- The lender files a complaint in court.
- The borrower is served and given a chance to respond or contest the foreclosure.
- A judge reviews the evidence and issues a ruling.
- If the court rules in favor of the lender, the property is ordered sold (usually at a public auction).
- The proceeds from the sale go toward paying off the debt.
Key traits:
- Slower process (because it goes through the courts)
- Borrower protections: More opportunities to contest or delay
- Required in many states that don’t allow power-of-sale clauses
States that primarily require judicial foreclosure include Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, and Wisconsin. Additionally, Vermont and Puerto Rico also rely on judicial foreclosures as the standard process
Some states allow either judicial or non-judicial foreclosure, depending on the loan documents and lender’s choice. These hybrid states include District of Columbia, Illinois (in rare cases), Maine, Oregon (in limited cases), and South Dakota. For example, in Texas, while most foreclosures are non-judicial due to the power of sale clause, some unique loans (like certain home equity or reverse mortgages) still require judicial action. Similarly, states like Colorado and Maryland technically use a trustee-supervised process that involves limited court oversight—sometimes called “quasi-judicial.”
A non-judicial foreclosure happens outside the court system. It’s based on a “power of sale” clause written into the mortgage or deed of trust.
How it works:
- The lender (or trustee) sends a Notice of Default to the borrower.
- After a waiting period, they issue a Notice of Sale with auction details.
- The property is sold at a trustee’s sale—no court involvement required.
Key traits:
- Faster process (weeks to months instead of years)
- Lower cost for lenders
- Limited borrower recourse (borrower usually must act fast to stop the sale)
States that primarily use non-judicial foreclosure include: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Georgia, Idaho, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, North Carolina, Oregon, Rhode Island, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, and Wyoming.
Some states allow either judicial or non-judicial foreclosure, depending on the loan documents and lender’s choice. These hybrid states include District of Columbia, Illinois (in rare cases), Maine, Oregon (in limited cases), and South Dakota. For example, in Texas, while most foreclosures are non-judicial due to the power of sale clause, some unique loans (like certain home equity or reverse mortgages) still require judicial action. Similarly, states like Colorado and Maryland technically use a trustee-supervised process that involves limited court oversight—sometimes called “quasi-judicial.”
When your property was sold at a tax deed or tax lien sale, what happened next — and whether you still have money coming to you — depends entirely on which system your state uses.
In a Tax Deed State
- The county sells the property itself to recover unpaid taxes.
- The sale may bring in more money than what was owed — this is called a surplus or overage.
- That extra money belongs to you, the former owner, not the county or the buyer.
- Every state has strict deadlines (some as short as 6 months) to file your claim before those funds are lost or absorbed by the state.
👉 Why it matters: If your property was sold for more than your taxes, you could be owed thousands of dollars. But counties don’t go out of their way to track you down — you have to claim it, and the process can be confusing or time-sensitive.
In a Tax Lien State
- The county doesn’t sell the property right away — instead, it sells the tax debt (a lien) to an investor.
- You usually have a redemption period — a window of time to pay off your taxes (plus interest and penalties) to keep your property.
- If you don’t redeem, the investor may eventually foreclose and take ownership.
- Even then, if the property later sells at auction for more than what was owed, there can still be surplus funds owed to you.
👉 Why it matters: Knowing your state’s system tells you whether you still have time to redeem your home, or if it’s already sold and you now need to claim your surplus funds.
What This Means for You Right Now
- If your property was in a tax deed state, your window to claim your overage is already ticking down.
- If you were in a tax lien state, your redemption period may still be open — and acting fast could save your property.
- In both cases, R² Recovery Network helps you navigate the paperwork, deadlines, and county procedures so you don’t lose what’s rightfully yours.
In Simple Terms
- Tax Deed Sale → Your home was sold. You might be owed money.
- Tax Lien Sale → Your taxes were sold. You might still save your home.
- Either way, time matters, and knowing your state’s system can be the difference between reclaiming money or losing it forever.
Eligibility and Ownership Questions
Many people who lose a property through tax foreclosure don’t realize they may still have rights to unclaimed money. This section explains who can legally collect, what happens if the original owner has passed away, and how R² Recovery Network protects your claim from mistakes or fraud.
If the rightful owner or their heirs never file a claim, the surplus funds don’t simply disappear—but they also don’t wait forever. After a specific period (which varies by state), the county or court may transfer the unclaimed funds to the state’s unclaimed-property division or escheat fund. Once that happens, the recovery process becomes much harder and sometimes impossible, depending on how long the funds have been dormant.
In short: If you don’t claim the money, the government eventually keeps it. That’s why starting your claim quickly protects what’s rightfully yours.
If you or a relative once owned a property that was sold at a tax foreclosure or mortgage foreclosure, there’s a good chance you qualify to file a claim. R² Recovery Network verifies ownership, checks county sale records, and confirms whether a surplus exists—at no cost to you.
Yes—but only if they have a legal right to it. For example, a recorded mortgage lender, judgment holder, or heir might have a valid claim depending on the lien priority or inheritance laws. Unfortunately, there are also people who attempt to file fraudulent or duplicate claims hoping to intercept those funds.
Our role: R² Recovery Network verifies ownership through county records, chain-of-title research, and identification checks to ensure that the money is released only to the rightful claimant. We guard against anyone else trying to collect funds that belong to you.
If the property owner has passed away, the funds don’t vanish—they become part of that person’s estate. In most states, the heirs or legal representatives can claim the surplus by providing proof of relationship (such as a death certificate, will, or affidavit of heirship).
R² Recovery Network assists heirs through this process by identifying next-of-kin, gathering the necessary documentation, and filing the claim properly so the family can recover what’s owed.
Bottom line: Heirs can still collect; it just requires a few extra estate documents, and we help handle every step.
hat’s perfectly fine. Many property owners are contacted by multiple companies or even law firms offering to help. The important thing is to work with a legitimate, transparent recovery team that explains the process, the fees, and your rights up front.
If you’ve spoken to someone else, you can still work with R² Recovery Network. We’ll verify the claim status, confirm whether any filings already exist, and ensure that your claim is submitted correctly—without jeopardizing your eligibility to collect.
Tip: Never sign duplicate contracts or pay upfront fees without confirming who is actually handling your case.
Because counties rarely go out of their way to notify people. When a property sells at auction, the court or tax office sends one letter—usually to the address of the property that was just lost. If the owner has moved, the notice never reaches them.
Additionally, surplus funds are often held quietly in a county trust account or court registry with no public announcement. Many former owners assume the sale wiped everything out and never realize money is sitting in their name.
That’s where we come in: R² Recovery Network researches county records daily to identify unclaimed surpluses and notify rightful owners before deadlines expire.
They technically can—but most don’t because the process is confusing, time-sensitive, and varies in every state (and sometimes by county).
Filing incorrectly can lead to delays, denials, or loss of funds. Some claims require court petitions, notarized affidavits, and precise evidence of ownership or heirship.
By partnering with R² Recovery Network, you gain professionals who understand each county’s procedures, track deadlines, and handle all the research and paperwork so you don’t risk losing your claim.
Think of us as your guide through the maze—ensuring your claim is filed right the first time.
Because we make the process simple, transparent, and efficient. Our team has decades of real-estate and title experience, so we know how to trace ownership records, locate missing documentation, and navigate county requirements quickly.
We handle the heavy lifting—research, filings, follow-ups, and communication with the county or court—while you stay informed every step of the way. There are no upfront fees; our recovery fee is only earned after your funds are successfully released.
In short: You hire R² Recovery Network for peace of mind, speed, and expertise—so you can reclaim what’s yours without stress or uncertainty.
Not always. Many counties allow heirs to file with an Affidavit of Heirship instead of full probate, depending on the estate’s size and the amount of funds held. R² Recovery Network helps you determine the simplest legal route based on state law and available documentation.
This can happen if multiple people have a potential interest in the property. When that occurs, the court or county will usually hold the funds until ownership is confirmed. R² Recovery Network works to resolve contested claims through title research, affidavits, and documentation proving rightful entitlement.
Yes. If a business entity owned the property, the authorized officer or member can claim on behalf of the company. R² Recovery Network verifies entity ownership and assists with proper documentation to ensure the claim is filed under the correct business structure.
The Process and Timeline
This section gives visitors a clear understanding of how the recovery process works from start to finish—what steps are involved, how long it typically takes, and what happens after signing the paperwork. It helps set realistic expectations and builds confidence in R² Recovery Network’s structured
Once we identify surplus funds linked to your name or property, we contact you to confirm ownership and explain your options. If you choose to move forward, we prepare all required documents—such as the agency agreement, limited power of attorney, and owner claim form—to authorize us to represent you in recovering your funds.
After everything is signed, our team files your claim with the proper county or court, tracks its progress, and communicates directly with officials to make sure it’s processed correctly and without delay.
In short: We handle the paperwork, follow-up, and verification so you don’t have to. You’re kept informed every step of the way until your check is issued.
Working with R² Recovery Network is simple and straightforward. To begin, you’ll need to review and sign a few short documents that allow us to act on your behalf strictly for the recovery process:
- Agency Agreement – outlines our role, your rights, and our recovery fee (only paid after your funds are released).
- Limited Power of Attorney – authorizes us to communicate with the county or court and file your claim for you.
- Owner Claim Form – provides the basic information the county requires to verify your eligibility.
We’ll also ask for a copy of your photo ID and, in some cases, proof of ownership or heirship if the property was inherited. Once those items are returned, our team handles everything else—from filing to follow-up.
You don’t need to appear in court, chase paperwork, or contact county offices—we do it all for you.
Every case is unique. Some owners qualify for surplus recovery, while others may be eligible for redemption, allowing them to reclaim their property. The best route depends on your state’s laws, how long it’s been since the sale, and whether the property has already transferred ownership.
R² Recovery Network reviews your specific situation and explains which option fits your timeline, budget, and goals. We’ll always give you an honest recommendation—not a one-size-fits-all answer.
Once your documents are signed, we immediately begin processing your claim. We’ll verify the surplus amount, confirm there are no competing claims, and file your official request for disbursement with the county or court.
We also monitor deadlines and communicate with local officials to make sure nothing stalls your recovery. You’ll receive regular updates until the funds are approved and released.
Our goal: Keep the process transparent and moving forward so you know exactly what’s happening at all times.
Most claims require only a few basic documents:
- A valid photo ID (such as a driver’s license or state ID)
- Proof of ownership, like a deed, closing statement, or property tax record
- In some cases, a social security number or tax ID for verification
- If the owner has passed away, proof of heirship or estate authority
Don’t worry if you’re missing something—our team helps you locate or request any needed records. We simplify the process so you don’t have to navigate confusing legal paperwork on your own.
Your funds remain secure with the county treasurer, court registry, or trustee—never with us. R² Recovery Network does not collect or hold your funds. We simply facilitate your legal claim and make sure the rightful owner receives their money directly from the source.
Transparency is key: You’ll always know where your funds are held and who’s responsible for issuing your payment.
That depends on where you are in the timeline. Immediately after a sale, most funds are held by the county treasurer or court registry. If no claim is made within the deadline, the funds may be transferred to the state’s unclaimed property division. R² Recovery Network tracks the exact location of your funds and files your claim with the correct agency to avoid delays.
Once your claim is approved, the funds are released in one of two ways—whichever path makes the process smoothest for you and ensures everything is handled securely.
In most cases, the county or court issues the check directly to R² Recovery Network as your authorized agent, or to a designated disbursement agent who manages the release. Once the funds clear, R² promptly disburses your portion to you and any other approved parties according to the signed agreement.
In other cases, the county may issue the check directly to you or your estate, depending on state procedures. If this occurs, our recovery fee will be invoiced separately once the funds have been received.
Our goal is always to follow the path that’s safest, fastest, and easiest for the prior owner while ensuring that everyone—especially you—is paid correctly and on time.
Absolutely. We believe in full transparency. You can contact us at any time by phone or email for an update. We track every claim from filing to release, so we can give you an accurate status report whenever you ask.
We’ll also notify you immediately once the claim is approved and your check is issued.
If a claim is denied, don’t panic. Denials can happen for simple reasons—missing documents, incorrect names, or overlapping claims. In many cases, these can be fixed and resubmitted.
R² Recovery Network reviews the reason for denial, corrects any issues, and re-files if possible. If a legitimate obstacle exists (such as another valid claimant), we’ll explain your options clearly so you understand your next steps.
Our commitment: We don’t give up on your claim until every possible route has been explored.
Even if the original claim window has expired, recovery might still be possible through the state’s unclaimed property division.
R² Recovery Network researches both active and dormant claims to determine if your funds were transferred to the state. If so, we can often still help you recover them—though the process may take longer. Acting quickly increases your chances of success.
Fees, Costs, and Legitimacy
One of the first questions people ask is, “How much will this cost?” or “Is this real?” This section explains our fee structure, timing, legitimacy, and data protection policies so you know exactly what to expect before moving forward.
There are no upfront costs to work with R² Recovery Network. We operate on a contingency basis, which means we cover all research, filing, and administrative expenses throughout the process.
Our standard recovery fee is a percentage of the funds successfully collected—never a flat or hidden fee. That percentage is clearly stated in the Agency Agreement you sign before we begin, so there are no surprises.
In short: if we don’t recover your money, you owe us nothing.
The time frame depends on the state, county, and the type of claim being processed. Some claims are released within a few weeks, while others may take several months if additional verification or court approval is required.
R² Recovery Network monitors every claim from start to finish and keeps you updated along the way. You’ll always know where things stand and when to expect your funds.
Most claims are completed within 60–180 days once all paperwork is received.
Yes—R² Recovery Network is a professional recovery agency specializing in helping former property owners reclaim surplus funds that rightfully belong to them.
Our team has decades of combined experience in real estate, title, and property law. Every agreement you sign is legally binding, fully transparent, and tailored to meet state and county requirements. You can verify our filings directly with the county clerk or court at any time.
We believe in transparency, integrity, and results—because that’s what builds trust.
The only risk is doing nothing and letting the deadline pass. Once the claim window closes, the funds are forfeited to the county or state’s unclaimed property division, making them difficult or impossible to recover later.
There’s no financial risk in working with R² Recovery Network. We front all the costs, handle the filings, and only earn our fee once you’ve received your funds.
In other words: if we don’t succeed, you don’t pay.
Yes. Protecting your personal information is a top priority. We use encrypted systems for file storage and secure email for document exchange. Your information is never shared, sold, or used for marketing purposes outside of your recovery claim.
All documents are handled under strict confidentiality agreements, and sensitive information such as Social Security numbers or account details is redacted or encrypted whenever possible.
Your trust and privacy matter to us.
CKIPS is a partner division of R² Recovery Network. CKIPS focuses on property recovery, asset verification, and document preparation for surplus and redemption claims.
If you received a letter from CKIPS, it means our research team identified a potential surplus connected to your name or former property. The letter is simply an invitation to verify ownership and learn how to claim your funds.
Rest assured—your letter is legitimate and part of our outreach to help rightful owners recover what’s theirs.
Redemption and Buyback Program
Even after a tax foreclosure, there may still be a path to reclaim your property or repurchase it through our Redemption Buyback Program. This section explains how redemption work, what it cost, and how our team help former owners rebuild stability and regain ownership on terms that work for them.
Yes. CKIPS and R² Recovery Network assist property owners who are still within their state’s redemption period—the limited window of time after a tax sale when the former owner can buy the property back.
We help you verify eligibility, calculate the redemption amount owed, and coordinate payment to the county or tax office. In some cases, we can also help secure financing or investor partnerships to complete the redemption when funds are tight.
If you’re still within your redemption period, act fast—every day counts.
The total cost depends on the amount owed at the tax sale, plus statutory penalties, interest, and fees set by your state. For example, in Texas, most properties require paying the auction price plus a 25% penalty within the first six months (or 50% for certain redemptions after six months).
We’ll provide a full, transparent breakdown of your redemption costs up front so you know exactly what’s required—no surprises or hidden fees.
In some cases, yes. If CKIPS or one of our network partners purchased your property at a tax sale, you may be eligible to repurchase it through our Redemption Buyback Program.
This program allows former owners to regain ownership through a structured buyback agreement, giving them time to stabilize their finances while keeping the home or investment property in their name.
Our goal: Make the process simple, fair, and achievable for former owners who truly want their property back.
No—you generally can’t do both. In nearly every state, redeeming the property and claiming the surplus (overage) are treated as two separate, opposite actions.
If you choose to redeem the property, you’re reversing the sale and getting your property back. That means no surplus exists because the funds used to redeem pay back the buyer and close the tax account.
If you choose to claim the surplus, you’re accepting the proceeds from the sale, which finalizes the foreclosure and can void any right to redeem the property.
R² Recovery Network will walk you through both options before any paperwork is signed to make sure you understand the impact of your decision and choose the path that’s best for your situation.
In short: Redeeming restores ownership; claiming surplus confirms the sale. You must pick one path or the other.
Redeeming the property and claiming the surplus (overage) are two separate and mutually exclusive remedies in nearly all tax foreclosure jurisdictions.
- Redeeming the property means you are buying back the property within the statutory redemption period. This action undoes or reverses the sale and reinstates ownership.
- Claiming the surplus means you are accepting the proceeds from the sale, which confirms that the sale is final and that you no longer have ownership rights in the property.
Therefore, once you claim the surplus, you’ve effectively acknowledged that you’re no longer the property owner. Courts in several states—including Texas, Georgia, and Florida—treat the act of claiming the overage as finalizing the sale and waiving any redemption rights that may have remained.
That’s why surplus recovery and redemption are usually presented as “either/or” options — not both.
To qualify, you must:
- Have been the prior owner of the property sold at a tax sale
- Demonstrate willingness and ability to participate in the buyback agreement
- Provide proof of income or repayment capacity (if a structured payment plan is used)
- Sign the required documentation outlining the terms of the buyback
Every case is unique, and we’ll tailor the plan to fit your financial circumstances and state regulations.
Our program is designed to help, not hinder—so we’ll work with you to find the best fit.
If you run into financial hardship, communication is key. We encourage you to reach out immediately so we can explore alternative arrangements before the agreement becomes delinquent.
In some cases, we can extend timelines, restructure payments, or explore surplus recovery as a backup option. Our goal is to keep you on track toward ownership—not penalize you for temporary setbacks.
We’re here to help you succeed, not to take your property away again.
State-Specific Information
Each state governs tax foreclosures a little differently. Some give former owners a chance to redeem the property after sale, while others finalize ownership immediately. Knowing your state’s classification helps you understand what options are available and how long you have to act.
In these states, once the property is sold at a tax sale, the sale is final. There’s no redemption period, meaning the former owner cannot buy the property back.
If the sale price exceeded the amount of taxes, fees, and penalties owed, the only remaining option is to file a claim for the surplus (overage) within the deadline allowed by that state or county.
Examples of states with no post-sale redemption:
California • Florida • Washington • Oregon • Nevada • North Carolina • New York • Ohio
Key takeaway: Once the gavel falls, ownership is transferred permanently—but you may still be entitled to the leftover funds from the sale.
Some states allow redemption only until the sale is officially confirmed by the court or until the tax deed is issued. This “grace window” may last a few days to a few weeks, depending on local procedures.
During this short window, the former owner can still redeem by paying the full sale amount plus penalties. After confirmation or deed issuance, the right to redeem expires, and only surplus recovery remains available.
Examples of limited-redemption states:
Arkansas • Illinois • Indiana • Minnesota • Missouri • New Jersey • North Dakota • Pennsylvania
Important: Timing is everything. Waiting even a few days after deed issuance may close the door to redemption permanently.
Other states offer a defined post-sale redemption period that can range from 30 days to 2 years. During this time, the former owner (or sometimes a mortgage lender) can pay the required amount and reclaim the property.
Once that period expires, ownership transfers permanently, and any unclaimed funds become available for surplus recovery only.
Examples of post-sale redemption states:
Texas – 6 months (2 years for homestead/ag use)
Georgia – 1 year
Tennessee – 1 year
Alabama – 3 years
Kentucky – 1 year
Delaware – 1 year
Iowa – 1 year
Tip: Redemption timelines are strict—missing the deadline eliminates property rights but may still leave you eligible to recover surplus proceeds.
Every state has its own laws governing tax sales, redemption periods, and surplus recovery deadlines. Knowing which category your state falls into determines whether you can redeem your property, claim surplus funds, or both (depending on timing).
Filing the wrong type of claim—or filing it too soon—can sometimes finalize the sale and terminate your right to redeem the property.
To see exactly how your state handles tax foreclosures and surplus recovery, visit our State Rules & Timelines tab for a full breakdown of redemption periods, claim windows, and procedures across the U.S.
R² Recovery Network always verifies the rules for your specific state before filing to ensure your claim is done correctly and within all legal deadlines.
Every state sets its own redemption and claim deadlines—some as short as 30 days. Check our State Rules & Timelines page to see how long you have to act in your state
Tax Foreclosure Mortgage Questions
Please reach us at ck@ckips.com if you cannot find an answer to your question.
When a property is sold for unpaid taxes, the tax lien takes priority over the mortgage. The sale proceeds first pay delinquent taxes, penalties, and county costs. If the sale price only covers those amounts, no surplus remains for junior lienholders like mortgage lenders.
Once the sale is finalized and no redemption occurs, the mortgage lien is wiped out. The lender loses its security interest in the property, and the new buyer receives title free and clear.
In most cases, the lender’s only remaining option—if allowed under state law—is to pursue a personal deficiency judgment against the borrower for any unpaid balance. However, many lenders choose not to pursue it.
In short: when there’s no surplus after a tax sale, both the owner and the lender lose their interest in the property, and the county’s tax lien is satisfied first.
When a property is sold at a tax foreclosure (or other judicial sale) and there are surplus funds (i.e., sale proceeds in excess of what was needed to satisfy the tax lien, costs, etc.), the following points apply:
- If you had a mortgage, home-equity loan, or other recorded lien on the property at the time of the sale, your lender (or lienholder) may still have a right to assert a claim on the surplus funds.
- Many states require that the former owner (or their agent) provide notice to the lender/lienholder of the intent to claim the surplus, giving that lender an opportunity to step in.
- In such circumstances, you should weigh whether pursuing the surplus is worth it, because:
- The lender may claim the funds, reducing or eliminating what you would recover.
- If you make a claim without notifying the lender properly (or without giving them a chance), the claim could be delayed, contested, or even invalidated.
- The lender may claim the funds, reducing or eliminating what you would recover.
- Therefore, in some cases it may be better to decline the surplus claim or proceed cautiously if the lender’s claim is likely to consume all the surplus.
If a lender or lienholder is in the picture, here are the kinds of remedies they might assert which could affect your surplus claim:
- They may file a claim against the surplus funds, up to the amount of their unpaid debt or what’s otherwise due under their lien.
- They might demand notification and service of the claim/petition before the funds are disbursed.
- They may object to the claim, requiring the court or clerk to hold a hearing on the surplus distribution.
- They may delay payment to you (the former owner) while their rights are adjudicated.
- In some states, failing to provide proper notice to the lender may mean the lender’s rights take priority or the claim has to be re‐filed—so you could incur additional cost/time.
Mortgage Foreclosure Surplus
When a property sells at a mortgage foreclosure, it may bring in more than what’s owed. That extra money—called surplus funds—belongs to the former owner or others with valid claims. This section explains how those funds work and who can collect them.
Yes. Surplus recovery applies to mortgage foreclosures just like tax sales. When the property sells for more than the total debt, legal fees, and costs, the leftover balance becomes surplus funds.
These funds can often be claimed by the former property owner, their heirs, or any junior lienholders in the order established by state law. R² Recovery Network researches court records, verifies eligibility, and files your claim to ensure you recover every dollar available.
Yes—but only after higher-priority liens are paid. The foreclosing lender, judgment creditors, and other lienholders are first in line for surplus funds.
If those lienholders fail to claim their portion within the deadline, the remaining balance goes to the former owner or heirs. R² Recovery Network monitors these filings closely and ensures you receive any amount left once valid claims are cleared.
Tip: Even with a mortgage, many owners still receive substantial surplus funds.
Surplus funds are distributed by lien priority—the order in which liens were recorded:
1️⃣ The foreclosing lender is paid first.
2️⃣ Next come junior liens such as second mortgages or judgments.
3️⃣ Whatever remains is released to the former homeowner or estate.
If the lender or lienholders miss their filing window, their right to those funds can expire, allowing the homeowner to claim a larger share.
R² Recovery Network ensures the proper order is followed so funds are released accurately and fairly.
If no valid claim is filed within the state’s deadline, the surplus is transferred to the state’s unclaimed-property division. Recovery may still be possible later, but it requires additional documentation and takes longer.
Our team can pursue both active and dormant surplus claims, depending on how long ago the foreclosure occurred. Acting promptly protects your rights and simplifies recovery.
Absolutely. We assist former owners, heirs, and lienholders in locating, filing, and collecting surplus funds from mortgage foreclosures nationwide.
Our team verifies sale details, calculates available proceeds, confirms lien hierarchy, and files all required court or trustee documentation. Depending on your case, the funds may be released to R² Recovery Network as your disbursement agent—who then distributes your share—or mailed directly to you once approved.
We manage the process from start to finish—accurately, legally, and with complete transparency.
R2 Recovery Network
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