Virginia 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 | Under Virginia's deed of trust statutes, when the borrower defaults the trustee named in the deed of trust may sell the property at public auction without a court case. For owner-occupied residential real estate the owner must be mailed written notice of the sale at least 60 days before the sale date. Va. Code § 55.1-320(7); § 55.1-321(A) Show the source textthe trustee shall forthwith declare all the debts and obligations secured by the deed of trust at once due and payable and may take possession of the property and proceed to sell the same at auction |
| Who holds foreclosure surplus | The foreclosure trustee receives the sale proceeds. The trustee pays the expenses of the sale, then taxes that have priority, then the secured debt and junior liens of record in order of priority, and must pay the residue to the grantor (the borrower) or the grantor's assigns. The trustee must account for the proceeds to the commissioner of accounts of the circuit court. If the borrower died before the sale, the surplus is paid to the personal representative of the estate. Va. Code § 55.1-324(A)(3); § 64.2-1309(A); § 55.1-331 Show the source textfourthly, the residue of the proceeds shall be paid to the grantor or his assigns |
| Claim window for foreclosure surplus | The deed of trust statute sets no deadline for the former owner to claim the residue. The trustee must return an account of the sale to the commissioner of accounts within six months after the sale date. If money is never claimed, Virginia's unclaimed property law has general rules: intangible property held in a fiduciary capacity is presumed abandoned when the owner shows no interest within five years after it became payable, and property held by a court is presumed abandoned after one year. Va. Code § 64.2-1309(A); § 55.1-2514(A); § 55.1-2518 Show the source textWithin six months after the date of a sale made under any recorded deed of trust, mortgage, or assignment for benefit of creditors, other than under a decree, the trustee shall return an account of the sale |
| Tax sale excess proceeds | Virginia localities collect long-delinquent real estate taxes through a court-ordered (judicial) sale, and the owner may redeem only before the sale date. The former owner, heirs or assigns are entitled to the surplus above the taxes, costs and liens and must prove the claim. The clerk of the circuit court holds the surplus; if no claim is made within two years after the sale is confirmed, the clerk pays it to the locality, which may later grant relief by ordinance. For certain low-value parcels the local treasurer may sell without a court case and keeps excess proceeds in an escrow account for two years. Va. Code §§ 58.1-3965, 58.1-3967, 58.1-3974, 58.1-3975(K) Show the source textif no claim for such surplus is made by such former owner or his heirs, devisees, successors, or assigns within two years after the date of confirmation of such sale |
| Rules for recovery companies | Virginia's unclaimed property law makes it unlawful to seek, receive or contract for a fee for locating property that the person knows has been reported or delivered to the state administrator (the State Treasurer) until 36 months after the holder delivered it. After 36 months, an agreement is not valid if the fee is more than 10 percent of the value of the recoverable property, and the owner may still argue at any time that the fee is excessive or unjust. A violation is a misdemeanor punishable by a fine of up to $1,000. The state may issue payment directly to the owner rather than to an agent, attorney-in-fact or assignee, and it need not recognize a power of attorney or assignment. Va. Code § 55.1-2542 Show the source textfor a fee or other compensation exceeding 10 percent of the value of the recoverable property |
How surplus funds arise in Virginia
When a home in Virginia 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 Virginia
We confirm the sale figures in the public record, identify which office in Virginia 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 Virginia that program is the Virginia Department of the Treasury, Unclaimed Property Division (vaMoneySearch.gov).
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, Virginia 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 Virginia
Virginia regulates this kind of service. Virginia's unclaimed property law makes it unlawful to seek, receive or contract for a fee for locating property that the person knows has been reported or delivered to the state administrator (the State Treasurer) until 36 months after the holder delivered it. After 36 months, an agreement is not valid if the fee is more than 10 percent of the value of the recoverable property, and the owner may still argue at any time that the fee is excessive or unjust. A violation is a misdemeanor punishable by a fine of up to $1,000. The state may issue payment directly to the owner rather than to an agent, attorney-in-fact or assignee, and it need not recognize a power of attorney or assignment. (Va. Code § 55.1-2542)
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 Virginia
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 Virginia, from locating the funds to filing the claim.
The foreclosure trustee receives the sale proceeds. The trustee pays the expenses of the sale, then taxes that have priority, then the secured debt and junior liens of record in order of priority, and must pay the residue to the grantor (the borrower) or the grantor's assigns. The trustee must account for the proceeds to the commissioner of accounts of the circuit court. If the borrower died before the sale, the surplus is paid to the personal representative of the estate.
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.