Washington 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 | Washington uses both procedures. A deed of trust may be foreclosed without a court case by a trustee's sale under the Deeds of Trust Act (chapter 61.24 RCW). A mortgage may be foreclosed by a lawsuit in the superior court of the county where the land lies (chapter 61.12 RCW), followed by a court-ordered sale. RCW 61.24.020; RCW 61.12.040 Show the source textA deed conveying real property to a trustee in trust to secure the performance of an obligation of the grantor or another to the beneficiary may be foreclosed by trustee's sale. |
| Who holds foreclosure surplus | After a trustee's sale, the trustee pays the expenses of sale and the debt secured by the deed of trust, then deposits any surplus (less the clerk's filing fee) with the clerk of the superior court of the county where the sale took place and mails notice of the surplus to everyone who was sent the notice of sale. Liens and interests wiped out by the sale attach to the surplus in their order of priority. Anyone who wants the money must file a motion in that superior court with at least 20 days' notice to the other parties, and the clerk pays out only on a court order. After a court (judicial) foreclosure, surplus goes first to the interests and liens eliminated by the sale in order of priority, and any remaining surplus to the mortgage debtor, heirs and assigns. RCW 61.24.080(3); RCW 61.12.150 Show the source textA party seeking disbursement of the surplus funds shall file a motion requesting disbursement in the superior court for the county in which the surplus funds are deposited. |
| Claim window for foreclosure surplus | RCW 61.24.080 does not set a deadline for filing the motion to disburse surplus funds. Separately, Washington's unclaimed property law presumes property held by a court to be abandoned one year after it becomes distributable if the owner has not claimed it, and unclaimed property is turned over to the Department of Revenue, where the owner can file a claim. RCW 63.30.040(9) Show the source textProperty held by a court, including property received as proceeds of a class action, one year after the property becomes distributable |
| Tax sale excess proceeds | Washington counties foreclose property tax liens in superior court once taxes are three years delinquent; the county treasurer then sells the property at public auction and gives the buyer a tax deed. The owner may redeem only until the close of business the day before the sale. If the winning bid is more than the taxes, interest and costs, the excess is refunded on application to the record owner, meaning the person who held title on the date the certificate of delinquency was issued. The county treasurer holds the excess; if no claim is received within three years after the sale it is deposited in the county's current expense fund and all claims to it are extinguished. RCW 84.64.050(1); RCW 84.64.070(1); RCW 84.64.080(10) Show the source textIn the event that no claim for the excess is received by the county treasurer within three years after the date of the sale |
| Redemption after the sale | It depends on the type of foreclosure. After a trustee's sale under a deed of trust, no one has a right to redeem the property. After a court (judicial) foreclosure sale, the judgment debtor may redeem from the purchaser within eight months after the sale if the mortgage states the property is not used principally for farming and the lender waived any deficiency judgment, and otherwise within one year, unless redemption rights have been precluded under RCW 61.12.093 and the sections that follow it. RCW 61.24.050(1); RCW 6.23.020(1) Show the source textAfter a trustee's sale, no person shall have any right, by statute or otherwise, to redeem the property sold at the trustee's sale. |
| Rules for recovery companies | Washington caps these fees by statute. For surplus funds from a deed of trust foreclosure that are held by a court or county, it is unlawful to seek, receive or contract for a fee for locating the funds, or for purporting to buy the right to recover them, above 5 percent of the value returned to the owner plus reasonable attorneys' fees and costs allowed by a court on a motion and hearing. A violation is a misdemeanor and an unfair or deceptive act under the Consumer Protection Act. Every such contract must carry a NOTICE TO HOMEOWNER in 10-point bold type above the signature line, including the right to cancel within 10 days of signing. The same rules apply to surplus from a court (mortgage) foreclosure. For unclaimed property held by the Department of Revenue, an agreement with a fee above 5 percent of the value expected to be recovered is unenforceable. RCW 61.24.135(3)-(4); RCW 61.12.200; RCW 63.30.780; RCW 63.30.790 Show the source textfunds held by a court or county that are proceeds from a foreclosure under this chapter and subject to disposition under RCW 61.24.080 in excess of: (i) Five percent of the value thereof returned to such owner |
How surplus funds arise in Washington
When a home in Washington 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 Washington
We confirm the sale figures in the public record, identify which office in Washington 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 Washington that program is the Washington State Department of Revenue, Unclaimed Property Section.
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, Washington 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 Washington
Washington regulates this kind of service. Washington caps these fees by statute. For surplus funds from a deed of trust foreclosure that are held by a court or county, it is unlawful to seek, receive or contract for a fee for locating the funds, or for purporting to buy the right to recover them, above 5 percent of the value returned to the owner plus reasonable attorneys' fees and costs allowed by a court on a motion and hearing. A violation is a misdemeanor and an unfair or deceptive act under the Consumer Protection Act. Every such contract must carry a NOTICE TO HOMEOWNER in 10-point bold type above the signature line, including the right to cancel within 10 days of signing. The same rules apply to surplus from a court (mortgage) foreclosure. For unclaimed property held by the Department of Revenue, an agreement with a fee above 5 percent of the value expected to be recovered is unenforceable. (RCW 61.24.135(3)-(4); RCW 61.12.200; RCW 63.30.780; RCW 63.30.790)
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 Washington
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 Washington, from locating the funds to filing the claim.
After a trustee's sale, the trustee pays the expenses of sale and the debt secured by the deed of trust, then deposits any surplus (less the clerk's filing fee) with the clerk of the superior court of the county where the sale took place and mails notice of the surplus to everyone who was sent the notice of sale. Liens and interests wiped out by the sale attach to the surplus in their order of priority. Anyone who wants the money must file a motion in that superior court with at least 20 days' notice to the other parties, and the clerk pays out only on a court order. After a court (judicial) foreclosure, surplus goes first to the interests and liens eliminated by the sale in order of priority, and any remaining surplus to the mortgage debtor, heirs and assigns.
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.