Right to surplus money after a trustee sale
Ariz. Rev. Stat. § 33-812(A)
In plain words
If an Arizona trustee sale brings in more than the costs, the loan and junior liens, the rest must be paid to the trustor (the former owner). If you sold the home before the sale, it goes to the owner of record at the time of sale.
Who is protected
Former owners of Arizona property sold at a trustee sale.
When it applies
- Only in Arizona.
- Only after the foreclosure sale.
What you can do
Ask in writing
Write to the trustee claiming any surplus, with proof of identity and address.
Deadline: Soon after the sale
Open the tool
Honest limits
- Junior lienholders are paid first; the trustee may deposit disputed funds with the court.
- This is general education, not legal advice. Laws change and details depend on your papers and your court; check the current law or ask a lawyer or legal aid.
The law
- State lawDisposition of trustee-sale proceeds
Ariz. Rev. Stat. § 33-812(A)
Exact part: (A)
What it says: After costs, the debt and junior liens, the balance is paid to the trustor.
Read the official texthttps://www.azleg.gov/ars/33/00812.htm
Court cases
- Homeowner lostSame topicMartins v. BAC Home Loans Servicing, L.P.
Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013)
a mortgage servicer acting for a properly assigned mortgagee may foreclose in Texas without possessing the original note, and an oral promise to modify a large loan is not enforceable
- Homeowner lostSame topicMilton v. U.S. Bank National Ass'n
Milton v. U.S. Bank Nat'l Ass'n, 508 F. App'x 326 (5th Cir. 2013) (per curiam) (unpublished)
an agreement to delay a Texas foreclosure falls within the statute of frauds and must be in writing to be enforced
- Homeowner lostSame topicBFP v. Resolution Trust Corp.
BFP v. Resol. Tr. Corp., 511 U.S. 531 (1994)
the price received at a non-collusive foreclosure sale that complied with state law is reasonably equivalent value under the Bankruptcy Code
Related rights
No deficiency after a trustee sale of a small home; fair-value limits otherwise
Ariz. Rev. Stat. § 33-814(A), (G)
If your Arizona home is a one- or two-family dwelling on 2.5 acres or less and it is sold at a trustee sale, the lender cannot sue you for the rest of the debt. In other cases the lender must sue within 90 days, and the deficiency is limited by the home’s fair market value.
Read this rightThe government cannot keep your home equity beyond the tax debt
U.S. Const. amend. VTakings Clause
If your home is taken or sold to pay property taxes, the government may collect what you owe, but it may not keep the extra value. Keeping the surplus is a "taking" of your property without just compensation, which the Fifth Amendment forbids (Tyler v. Hennepin County, 2023). You may be able to claim the surplus, but you usually must follow your state's claim process and deadlines.
Read this rightAfter a discharge, creditors cannot collect the wiped-out debt from you
11 U.S.C. § 524(a)(2)
A bankruptcy discharge wipes out your personal liability for most debts in the case. After that, the law forbids creditors from suing, calling or otherwise trying to collect a discharged debt from you personally. A court can hold a creditor in contempt if there was no fair doubt that its conduct was barred.
Read this rightRenters get at least 90 days' notice after a foreclosure
12 U.S.C. § 5220 note(Pub. L. 111-22, div. A, § 702(a)–(b))
If you rent a home that goes through foreclosure, the new owner must give you a notice to move at least 90 days before you have to leave. If you have a real (bona fide) lease signed before the foreclosure notice, you can usually stay until the lease ends. The exception is when the new owner will live in the home; even then you still get the 90 days' notice.
Read this right