According to the various news channels including ABC and NBC, Cook County holds nearly $16 million in surplus funds. Surplus funds are created when foreclosed properties are sold for more than what the owner owed to the bank. Due to the real estate market rebound, there has been an increase in sales resulting in surplus funds. While Cook County may hold a significant amount of funds, surplus funds can become available in any county.

In the event there is a surplus as a result of a foreclosure auction of real estate, all interested parties that were named in the original mortgage foreclosure action, including the Association, are sent notice of that surplus. Upon receipt of a notice of surplus and in the event the foreclosed home owner owed the Association money, the Association may petition the court for the surplus funds.

While it has been our experience that it is often times much easier to obtain surplus funds in the collar counties where we can file a motion in front of the original foreclosure judge to secure the funds, our law firm can proceed to obtain surplus funds in Cook County cases as well.

In Cook County, before petitioning the court for release of the surplus funds, it is our experience that we must first file a petition in  the underlying foreclosure court to amend the original judgment to include the Association’s lien as a subordinate lien to that of the lender, and than petition the Chief Judge of the Chancery Department asking that the surplus funds be paid to the Association.

In the event you receive Notice of a Surplus in a mortgage foreclosure action, do not hesitate to contact Kovitz Shifrin Nesbit at 855-537-0550 or visit our website at


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