New York at a glance
Checked against the sources cited, 2026-09-19
| Topic | What the law says, and where it says it |
|---|---|
| How foreclosure works here | New York mortgage foreclosures are court actions. The court's judgment directs that the property be sold by or under the direction of the county sheriff or a referee, within ninety days of the judgment. N.Y. Real Prop. Acts. Law (RPAPL) §1351(1) Show the source textbe sold by or under the direction of the sheriff of the county, or a referee within ninety days of the date of the judgment |
| Who holds foreclosure surplus | The officer who conducts the sale must pay all surplus moneys into court within five days after receiving them. Money paid into court is delivered to the county treasurer (in New York City, the commissioner of finance), and it is paid out only on a court order directing payment to a specified person. Anyone claiming the surplus may file a written notice of claim with the clerk where the report of sale is filed, and the court decides the claims and their priority and orders distribution. RPAPL §1354(4); RPAPL §1361; RPAPL §1362(1); N.Y. C.P.L.R. 2601(b); N.Y. C.P.L.R. 2607 Show the source textAll surplus moneys arising from the sale shall be paid into court by the officer conducting the sale within five days after the same shall be received. |
| Claim window for foreclosure surplus | The statute lets a claimant file a written notice of claim at any time before the report of sale is confirmed, and it refers to a motion for distribution made when confirmation is sought or within three months after it. Money paid into court that has stayed with the county treasurer, or the New York City commissioner of finance, for three years is deemed abandoned property and is paid over to the State Comptroller by April 10 of the following year. N.Y. Aband. Prop. Law §600(1)(a); N.Y. Aband. Prop. Law §602(1); RPAPL §1361(1), (2) Show the source textshall have remained in the hands of any county treasurer, or the commissioner of finance of the city of New York, for three years |
| Tax sale excess proceeds | In most of New York, unpaid property taxes are enforced by a court foreclosure of the tax lien under Article 11 of the Real Property Tax Law: the tax district (county, city, town or village) obtains a judgment and a deed, and the owner may redeem until the redemption period ends, generally two years after the lien date. Under the 2024 surplus law, within forty-five days after the tax district sells the property the enforcing officer must determine whether there is a surplus, pay it into court and notify the former owner. Claims are decided in the same manner as mortgage foreclosure surplus. For residential property the proceeding stays open for at least three years from confirmation of the report of sale, and surplus still unclaimed at the end is paid to the tax district, not to the State Comptroller. Localities that kept their own charter or local tax enforcement law do not use Article 11. N.Y. Real Prop. Tax Law §1197(1), (4), (5); §1196(1)(a), (3)(b); §1136(3); §1110(2); §1104(2) Show the source textthe proceeding shall remain open for at least three years from the confirmation of the report of sale, or for such longer period as the court may direct |
| Redemption after the sale | No. The foreclosure statute lets the borrower stop the case by paying the amount due into court before the sale, but the deed given after the sale is an entire bar against the borrower. The New York court system's help page says the right of redemption lasts until the home is sold and that once the sale is complete the owner loses the home. RPAPL §1353(3); RPAPL §1341 Show the source textSuch a conveyance is as valid as if it were executed by the mortgagor and mortgagee, and, except as provided in section 1315 and subdivision 2 of section 1341, is an entire bar against each of them |
| Rules for recovery companies | New York's Abandoned Property Law regulates anyone who charges a fee to locate or retrieve abandoned property that has been delivered to the state and is held by the State Comptroller. The agreement is not valid unless it is in the form the Comptroller prescribes, in writing, signed by the owner and notarized, discloses the nature of the property and the Comptroller's name and address, and carries a boldface notice that the owner can get the funds directly from the Comptroller without paying a fee. The fee may not exceed fifteen percent of the value of the recoverable property, and the owner may still argue at any time that the fee is excessive or unjust. The section does not apply to a client's agreement with an attorney or accountant in the three situations the statute lists. N.Y. Aband. Prop. Law §1416 Show the source textNo such agreement shall be valid if it provides for payment of a fee in excess of fifteen percent of the value of recoverable property. |
How surplus funds arise in New York
When a home in New York is sold at a foreclosure sale or a tax sale for more than the debt and the costs of the sale, the money left over is surplus funds, also called excess proceeds or overage. It does not belong to the lender or to the buyer. Liens recorded behind the foreclosed debt are paid first, and what remains belongs to the former owner or to the owner's heirs. Read surplus funds explained for the general rules and liens and competing claims for the order of payment.
How a claim moves in New York
We confirm the sale figures in the public record, identify which office in New York is holding the money, and prepare and file the claim the way that office requires, advancing the costs. Because we bring the whole record with us, the claim does not stall on a missing document, a competing name or a missed date. See how to qualify for what we handle and what you provide. Notices about surplus are usually mailed to the last address on record, which is often the home that was sold, so do not wait for a letter. In New York that program is the Office of Unclaimed Funds, Office of the New York State Comptroller.
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, New York law may allow a simplified procedure, or a probate court may need to appoint a personal representative. See estate and heir recovery and probate assistance.
Working with a recovery company in New York
New York regulates this kind of service. New York's Abandoned Property Law regulates anyone who charges a fee to locate or retrieve abandoned property that has been delivered to the state and is held by the State Comptroller. The agreement is not valid unless it is in the form the Comptroller prescribes, in writing, signed by the owner and notarized, discloses the nature of the property and the Comptroller's name and address, and carries a boldface notice that the owner can get the funds directly from the Comptroller without paying a fee. The fee may not exceed fifteen percent of the value of the recoverable property, and the owner may still argue at any time that the fee is excessive or unjust. The section does not apply to a client's agreement with an attorney or accountant in the three situations the statute lists. (N.Y. Aband. Prop. Law §1416)
Any agreement you sign, with us or with anyone else, has to follow that rule.
No out-of-pocket expense. Our only payment is a completion fee taken from the surplus once it is recovered. Where your state requires a licensed attorney for a court or probate filing, a licensed attorney handles it, and you still pay nothing out of pocket. Before you sign with anyone, read what a surplus funds scam looks like.
Questions about surplus funds in New York
Enough to prove who you are and how you held the property: identification, the deeds, any notice you received, and, if the owner has died, the estate paperwork. We do the rest for New York, from locating the funds to filing the claim.
The officer who conducts the sale must pay all surplus moneys into court within five days after receiving them. Money paid into court is delivered to the county treasurer (in New York City, the commissioner of finance), and it is paid out only on a court order directing payment to a specified person. Anyone claiming the surplus may file a written notice of claim with the clerk where the report of sale is filed, and the court decides the claims and their priority and orders distribution.
No out-of-pocket expense. We advance the costs and are paid a completion fee from the surplus only after it is recovered. Where a court or probate filing requires a licensed attorney, a licensed attorney handles it.