Surplus Funds, also called Excess Proceeds, describes the
money left over after a Trustee's Sale (foreclosure sale) after the
lender has been paid in full, and the costs and fees of the foreclosure
sale have been paid.  The applicable laws changed significantly in
August 2002 and continue to be revised.

By these laws, a foreclosure trustee has up to 90 days after the
completion of the sale to disburse the Excess Proceeds.  Often this
involves the deposit of the funds with the County Treasurer.  Anyone
with an interest in those funds then seeks approval from a local
Superior Court judge to obtain those funds.  

When the Trustee deposits the Excess Proceeds with the County
Treasurer, the laws now require the Trustee file a civil complaint to
accompany the deposit.  Once the funds have been deposited and
complaint has been filed, a photocopy of that complaint, and the title
report will be mailed to everyone with an interest in the property,
except the lender that foreclosed its lien.

If you were the owner of the property:  
The Maricopa and Pinal County Courts provide a package of
information for former owners to further explain this process and
provide basic legal forms.  These packages are available at the
Maricopa County Self-Service Center at the courthouses, or on the
Internet at the following links:

Maricopa County Forms   
Pinal County Forms  

If you received a package of documents from this office
regarding Excess Proceeds, the following information
may provide a further explanation of the process.
Excess Proceeds Notice
You received a photocopy of a civil complaint filed as required by state law to accompany the deposit
of the Excess Proceeds from a Trustee’s Sale.  The title report indicated that you might have an
interest in the property; therefore, state law requires us to send you this information.

The complaint describes the property involved, the trustee’s sale, the funds generated by that sale,
and how the funds have been applied so far.  If you believe you have a claim to those excess
proceeds, you must file an application with the Superior Court under the court case number assigned
and shown on the enclosed documents.  The applicable law is Section 33-812 of the Arizona Revised
Statutes; a portion of that law is as follows:

A.R.S. § 33-812(G) Any person with a recorded or other legal interest in the property at the time of
the sale may apply for the release of the proceeds by filing an application for distribution in the civil
action that was filed by the trustee pursuant to subsection D of this section. The applicant shall mail
postage prepaid by any form of mail that requires a signed and returned receipt a copy of the
application to the county treasurer and all persons at each of the addresses named on the list of
persons that is incorporated in or attached to the complaint. On return of the signed receipt or the
undelivered or unclaimed original envelope, the applicant shall file with the court an affidavit that
states that the application was mailed to the person and that the application was either:
1. Received, as evidenced by the receipt. The applicant shall attach to the affidavit a copy of the
receipt.
2. Not received, as evidenced by the returned envelope. The applicant shall attach to the affidavit a
copy of the original unopened and undelivered or unclaimed returned envelope.

A.R.S. § 33-812(H) Any person who receives the application or who claims a right to the proceeds
may file a response to the application within thirty days of the mailing of the application. The person
filing a response shall mail a copy of the response to each applicant. Within ten calendar days from
the date the response is mailed, an applicant may file with the clerk and mail to each respondent a
reply to the response. On expiration of the time for filing a reply, an applicant shall provide the court
with postage prepaid business envelopes that are addressed to all persons who are entitled to
receive copies of the complaint pursuant to subsection D of this section. If an association with a claim
is not paid by the trustee pursuant to subsection A, paragraph 4 of this section and is required to file
an application or response pursuant to this subsection in order to recover proceeds, the association
may request from the excess proceeds of the sale an award of its reasonable attorney fees and costs
incurred.

Disclaimer:  This information is believed to be accurate.  This information is of a general nature and
should not be relied upon to apply to your specific situation.  No attorney-client relationship is formed
or intended.  This notice is not a substitute for personalized advice from a competent attorney.  If you
have questions you should seek the assistance of an attorney licensed to practice law in Arizona.
 
Surplus Funds from a Trustee's Sale
LAW OFFICES OF
REX C. ANDERSON, P.C.
SCOTTSDALE ARIZONA
Arizona Real
Estate
Foreclosure Law