What Is A Foreclosure Overage Refund?

If the purchase price at the foreclosure auction exceeds the borrower's loan total, the difference is known as "excess proceeds" or "surplus funds." 

If you are one of the numerous homeowners who has experienced foreclosure, you might be curious about what happens to the remaining funds once the sale is complete. If you lose your property due to foreclosure and it sells for more than you owe, you may be able to pocket the difference. 

 Example. Assume your house sells at a foreclosure auction for $300,000. You owe $200,000 to the foreclosing lender. The extra $100,000 is surplus money.