What are Excess Proceeds
When a property goes through foreclosure (trustee’s sale) in Arizona, if the bid at the foreclosure sale is more than the amount necessary to pay the debt on the property, the extra money is deposited by the foreclosing trustee with the county treasurer. These funds are referred to as “Excess Proceeds.”
Who is entitled to the money?
The Arizona law sets forth the priority for who is entitled to the money. In general, the statutory scheme provides that the money goes first to Home owner associations, second lien holders (Home equity lenders typically), and then the homeowner.
What if I have a judgment against me–does the judgment holder get the money?
Yes and no. If this property was your home at the time of the foreclosure, you are entitled to assert your “homestead” rights against the judgment lien holder, and you will get the money.
Does the second lien holder always get the money?
In many cases the second lien holder does not apply for the money. If the lien holder does not apply within the time frame allowed, then the court will award the money to you.
Where can I go to see if I have excess proceeds?
The Maricopa County Treasurer maintains a website that lists the cases that have been filed and the amount of money that was deposited. The list is in alphabetical order, so you can scroll down until you see your name, and the amount of money that was deposited with the county treasurer.
If my name is on the list, does that mean that I have been sued?
No. It just means that excess proceeds from the sale of your property have been deposited with the county treasurer.
How long does it take?
The Arizona Statute, A.R.S. 33-812 sets forth the procedure. Once the money has been deposited with the County Treasurer, the homeowner or other claimants can file an application for the money. If there is more than one claimant, then there is a waiting period of 180 days before anyone can recover the money. If there is only one claimant (the homeowner), then the waiting period is 45 days.
If my name is on the list, does that mean that I am entitled to the money?
Maybe. If you had a second lien holder (Home equity line of credit or second mortgage), or an HOA, then the lender is entitled to the money before you can get it. However, the lender MUST APPLY for the money in a timely manner, which does not always happen.
How much do you charge?
The Butler Law Office does all excess proceeds applications on a contingent fee basis, which means that we only get paid if you get paid. In most cases, we advance the filling fees and costs, meaning that you do not have to put out any money to start the proceeding. The fees vary, depending on the complexity of the case and our assessment of the likelihood of recovering the money. If for example, there is a second lien holder who has the right to recover the money, our contingent fee might be higher than if you are the only claimant. Our average fee (including the filing fees and costs) is between $2,500 and $3,000, but can be higher or lower depending on the situation.