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The foreclosure process in Seattle is complex. Many property owners are unaware they still have rights after experiencing foreclosure on a property or home. Money may be available to you from the sale of a property in foreclosure after satisfying the debts that you owe.

A Seattle, WA, surplus funds attorney with our firm can help you navigate the legal process more effectively and claim any available funds after foreclosure. A small firm, Symmes Law Group strives to deliver significant results for every client. Our personalized services are invaluable if you face substantial challenges due to bankruptcy, debt settlement, and foreclosure. 

What Are Surplus Funds?

Excess money above the amount you owe a lender or government entity from selling a property in foreclosure results in surplus funds (RCW §61.24.090). Depending on who manages the foreclosure, a foreclosing trustee or court official will then deposit the surplus funds with the county’s Superior Court, where a foreclosure occurs. You will receive notification of a potential claim on the funds.

Claiming surplus funds requires you to follow a county’s procedures to recover the funds. Funds without a legitimate claim go into the county’s funds for deposit. Surplus funds will then go to the Washington State Department of Revenue if they remain unclaimed and do not relate to restitution. 

Why Choose a Surplus Funds Attorney with Our Seattle Firm

Richard J. Symmes, Esq.—our founding attorney and a Seattle native—offers exceptional guidance to individuals and businesses experiencing bankruptcy. Our firm works closely with clients to support their financial recovery. We offer affordable legal services in King County, providing clients access to trusted legal resources. 

Our team offers personal legal services through Zoom or phone consultation to accommodate your location and needs. Clients may also visit our convenient location when you schedule a complimentary consultation to learn how we can help you claim surplus funds in Seattle. 

Symmes Law Group provides client services built on respect and professionalism. We recognize that legal questions arise at any time and provide responsive communication when you need our experienced guidance. Our client reviews demonstrate our unwavering commitment to serving you when financial hardships, such as bankruptcy or foreclosure occur. 

How a Seattle Our Firm Can Help You Claim and Recover Surplus Funds

Claiming and recovering surplus funds is a legal process you must complete following a county’s specific legal criteria. Setbacks, challenges, and unanswered questions can prevent you from taking the steps you need to take to recover surplus funds. A surplus funds lawyer with our firm can provide support in the following actions:

  • Determining your eligibility to claim and recover surplus funds 
  • Navigating unique circumstances relating to a foreclosure and surplus funds resulting from the sale of a property
  • Filing any paperwork within time limitations
  • Following the claim procedures based on the county in which the property exists
  • Filing motions, setting a hearing, and providing the proper pleadings and evidence
  • Working to ensure your best interests in receiving any surplus funds available to you while minimizing or eliminating delays 

Our Seattle firm offers upfront information about the cost of our services so you experience no surprises. We understand the predatory practices that harm individuals already experiencing financial challenges. Symmes Law Group is your partner in achieving economic recovery.

Am I Eligible to Claim Surplus Funds?

If you experience foreclosure on your home or property, you may be eligible to claim surplus funds. The amount a party pays when buying a property is one component determining the amount of funds that are available. Whether you owe taxes or there are junior lienholders you owe money to will also determine if surplus funds exist. 

You may also be eligible to claim surplus funds on a foreclosed property that sells if you are a beneficiary of a deceased property owner. Various laws may determine your eligibility to file a claim and recover surplus funds.

Due to the rise in property values in Seattle, many homes and property values produce excess funds above liens, taxes, or other debts that owners may owe. Filing a claim as soon as possible prevents delays and the redistribution of funds to government entities. 

Who Can File a Claim for Surplus Funds After a Foreclosure? 

Anyone can file a claim for the surplus funds resulting from a foreclosure. However, an individual must demonstrate their entitlement to the funds. Individuals with a potentially successful claim to the funds may include:

  • You, the former property owner
  • An estate heir
  • Record title owner
  • Creditors providing second mortgages or judgment liens

A surplus funds attorney with our firm will work to seek the full amount owed to you. Your attorney can explain the rights you and other potential parties have to the funds. However, our focus is on meeting your legal needs.

How to Get Surplus Funds After a Foreclosure

A surplus funds lawyer can help you determine the type of foreclosure on a property. The foreclosure type determines who handles or manages the surplus funds. Common foreclosures include:

  • Judicial foreclosure: Mortgage debtors initiate court actions to foreclose and recoup the principal of a loan and other costs if you finance your home but stop making payments. 
  • Non-judicial foreclosure: Trustees may sell a home to recover their costs when you finance the home’s purchase with a Deed of Trust.
  • Judicial foreclosure due to tax delinquency: A county may sell a property at auction to satisfy property taxes you do not pay, and you do not qualify for tax exemptions or deferrals.

Our firm can assist with identifying a trustee or court official managing the sale of a foreclosed property. We can also explain the foreclosure timeline in Washington State.

File a Motion With the Superior Court

A surplus funds attorney in Seattle can file a claim for disbursement of surplus funds after a foreclosure in Washington State once a trustee sells a property, or debts to junior lien holders are settled. Your legal representative can file a motion and request a hearing in the appropriate county’s superior court, giving the necessary notice. 

Notify Other Parties of the Motion

You must notify by mail each party who may file a claim for the surplus funds. A 20-day notification is necessary. Your legal representative can serve the papers for you.

Attend the Hearing

The surplus funds lawyer with our firm representing your claim will confirm the details of your hearing. Your representative can speak on your behalf before a judge to establish your claim on the surplus funds. You may also prefer to talk on your own behalf after receiving guidance from your lawyer.

Other parties with an interest have the right to be present at the hearing. Anyone who objects to you claiming the funds has the right to speak. Our team can help you navigate various circumstances you may encounter. 

Submit the Final Paperwork to Recover Surplus Funds

You will file tax exemptions and other paperwork depending on the county’s requirements. Our team can determine what paperwork you need to recover surplus funds. There are also associated fees with the claim process that you must pay regardless of securing legal representation or filing a claim yourself. 

Potential Challenges to Receiving Surplus Funds After a Foreclosure Sale

Recovering surplus funds after a foreclosure in Seattle is not always simple. Various complications can slow the legal process or prevent you from recovering funds. Experience navigating the following challenges is necessary.

Lienholder Priority to Claims

Lienholders may have priority on surplus funds to cover any debts you owe. A creditor may contest your claim when they feel they have a legal claim to the funds. A creditor may also file a claim for the surplus funds.

Property Ownership Disputes

A foreclosed property may have multiple owners or possible beneficiaries. Divorced spouses may dispute each other’s claims if they feel entitled to the funds. Additionally, a court may forgo the recovery of surplus funds on properties with a questionable title that sell under foreclosure.

Legal Challenges 

Failing to give the appropriate notice to other potential claimants can lead to a denial of your claim for surplus funds. Challenges to your claim can also result in litigation to determine who has the right to claim the surplus funds. Appeals to court decisions can further slow or prevent the disbursement of funds. 

Tax Implications 

Your unique circumstances dictate taxes on surplus funds from a foreclosure sale in Seattle, WA. You will need to determine if the surplus funds are taxable income. Consulting with a tax professional can help determine if and how much you will pay.

What Counties Can a Seattle Surplus Funds Lawyer Represent Me In?

Symmes Law Group serves clients throughout Washington State. We have experience in navigating each county’s legal requirements. We can help you file a claim and recover surplus funds in the following counties in Seattle:

Working with a Seattle, WA, consumer bankruptcy attorney at our firm when you begin experiencing trouble paying debts can provide insight into your legal options. A member of our team can discuss discharging your debts through a Chapter 7 bankruptcy or under the Chapter 13 bankruptcy code. Armed forces and service members may have additional options to prevent foreclosure. 

How Long Do I Have to Claim and Recover Surplus Funds?

Some counties, like King County, state that a record title owner has up to three years from the date a property sells to file a claim for surplus funds. However, more time may be available to file a claim with the Department of Revenue in Washington State. Claims that exceed three years may require additional paperwork and take longer to recover surplus funds. 

Because the time limits for filing a claim may vary, making recovering funds more challenging, we recommend contacting a surplus funds attorney as soon as possible. Our firm can provide the details that apply to your claim and begin work immediately. 

How Long Does it Take to Obtain Surplus Funds?

The average time it takes to obtain surplus funds in Seattle is 30 to 45 days. However, it can take several months, depending on the circumstances of a foreclosure. The following factors impact the time it takes to recover surplus funds:

  • 20-day notice, each party must receive
  • Whether or not all paperwork is submitted correctly
  • How long it take to schedule a hearing
  • Whether objections to a claim occur
  • When a court cuts checks

Our experience benefits you by minimizing or potentially bypassing situations that can delay your recovery of surplus funds. Our team’s efficiency can ultimately save you time and money. 

Is a Surplus Funds Agent the Same as a Surplus Funds Lawyer?

A surplus funds agent may contact you, offering helpful advice and assistance to recover any funds you have the right to claim. Some banks and mortgage lenders utilize professional agents to perform these services. However, verifying the agent is a legitimate professional is crucial.

Most often, agents are not legal representatives and do not hold a state license. They work for companies that locate individuals who have a claim to surplus funds via public records. Surplus agents may work from any location and are only available by phone if you can reach them. 

They may also request money up front and charge exorbitant fees to claim money that is rightfully yours. Working with a surplus funds lawyer provides you with a personal representative who is legally responsible for pursuing your best interests. Our team can explain what you need to know about surplus funds and answer additional questions throughout the process.

Should I Work Directly With a Trustee to Recover Surplus Funds?

Laws are in place to protect your legal rights when claiming surplus funds. Laws also offer guidance should a dispute over surplus funds arise. A surplus funds lawyer in understands the laws that apply specifically to your claim and will adhere to county rules governing surplus funds. 

Schedule a Free Consultation with a Seattle Surplus Funds Attorney Near You

The Symmes Law Group team is here to simplify the process of recovering surplus funds. Our firm offers practical navigational tools and legal guidance to help you take the proper steps to file a claim for surplus funds from a foreclosure sale. Schedule a free consultation to discuss your needs and learn how we can help.

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  • Richard Symmes

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