Colorado Surplus Funds: A Guide for Recovery Agents
A Colorado surplus funds guide for recovery agents. Learn foreclosure and tax-sale deadlines, where unclaimed money goes, and how fee rules affect helpers.
A quick note from me before you dig in. I've tried to file overbid claims with several public trustees in Colorado. In my experience, they won't work with third parties. Some won't even work with attorneys. That's my own field experience, not legal advice. But it tells you a lot about Colorado, and the law below helps explain why.
Agent quick facts
| Foreclosure type | Both: a Public Trustee conducts a power-of-sale foreclosure, with district court authorization through Rule 120. C.R.C.P. Rule 120(a) |
| Mortgage surplus | The officer holds unclaimed overbids in escrow for sales on or after September 1, 2012; sheriff-sale proceeds go into the court registry. Eligible junior lienors are paid first, then the person liable under the mortgage loan or deed of trust may receive what remains. C.R.S. § 38-38-111 |
| Tax sale surplus | Under the current public-auction rules, eligible junior lienors are paid first and any remaining overbid goes to the property owner. The treasurer handles the funds. C.R.S. § 39-11.5-109 |
| Deadlines | The amended statute sets a six-month claim period for mortgage overbids from the foreclosure sale, but the later enacted bill summary does not establish whether that deadline changed. For tax auctions, unclaimed remaining overbids are held in escrow for six months from the auction date. 38-38-111(3)(a); HB21-1224; C.R.S. § 39-11.5-109 |
| If no one claims it | Unclaimed mortgage overbids may be transferred to the state treasurer or held by the county treasurer under a county resolution. Unclaimed tax-auction overbids go to the unclaimed-property administrator, not the state treasurer. 38-38-111(3)(a); C.R.S. § 39-11.5-109 |
| Fees and agreements | For overbids of $1,000 or more, agreements to recover money from the Public Trustee or treasurer are unenforceable while those offices hold the funds. After transfer to the administrator, agreements generally cannot be made for two years; later fees are capped at 20% or 30%, depending on when the agreement is made. Section 4; 38-38-111(2.5)(c); Section 6; 38-13-128.5(1)(a) |
| Third parties | Gray area. The law allows qualifying junior lienors to receive funds, and a person claiming to be the owner of property held by the administrator may file a claim. It does not spell out whether an agent or other representative may file for an owner. C.R.S. § 39-11.5-109; C.R.S. § 38-13-903 |
| Field notes | See Alfred's note at the top of this page. |
Checked against the official state code and government office pages in October 2026.
The clock for mortgage surplus
The amended statute sets a six-month claim period for remaining mortgage overbids from the sale date, but the later enacted bill summary does not establish whether that deadline changed. For sales on or after September 1, 2012, the officer holds unclaimed overbids in escrow. Sheriff-sale proceeds go into the court registry. The law also allows unclaimed mortgage overbids to go to the state treasurer or stay with the county treasurer under a county resolution. 38-38-111(3)(a); HB21-1224
Junior lienors who filed a notice of intent to redeem but didn't redeem may be paid, up to their lien amounts. The law directs any remaining overbid to the person liable under the mortgage loan or deed of trust. C.R.S. § 38-38-111
The clock for tax surplus
After a tax public auction, the treasurer must mail the property owner notice of any remaining overbid within 30 days. For amounts of at least $25, the treasurer must make reasonable efforts to find the owner's current address. Unclaimed remaining overbids stay in escrow for six months from the auction date. Then they go to the administrator under the Revised Uniform Unclaimed Property Act. This is a separate unclaimed-property system. C.R.S. § 39-11.5-109
Eligible junior lienors may be paid first from the overbid. The owner may receive any amount left over. C.R.S. § 39-11.5-109
What happens when time runs out
For mortgage overbids, unclaimed-funds rules allow a transfer to the state treasurer or county treasurer. The county's resolution determines which applies. Some offices, like the Arapahoe County Public Trustee, say they hold unclaimed funds in escrow for six months. After that, they transfer the funds to the state treasurer. Arapahoe County Public Trustee, Overbid Information
For tax-auction overbids, the treasurer transfers unclaimed funds to the unclaimed-property administrator after six months. A person claiming to be the owner of property held by the administrator may file a claim. C.R.S. § 39-11.5-109; C.R.S. § 38-13-903
What helpers need to know
Colorado uses a power-of-sale process handled by the county Public Trustee. District court authorization comes through Rule 120. C.R.C.P. Rule 120(a)
For overbids of $1,000 or more, compensation agreements to recover money from the Public Trustee or treasurer can't be enforced while those offices hold the funds. Inducing someone to enter certain Public Trustee agreements is a misdemeanor. For funds transferred to the administrator, agreements generally can't be made until two years after transfer. Agreements made between two and three years after transfer are capped at 20%. Agreements made more than three years after transfer are capped at 30%. C.R.S. § 38-38-111(2.5)(c); C.R.S. § 39-11.5-109(2)(c); Section 6; 38-13-128.5(1)(a)
What the law doesn't spell out
- We didn't find anything in the state code or on official sites spelling out whether an agent or other representative may file for the owner. Treat it as a gray area. Ask the office holding the funds what it requires.
- We didn't find a process for challenging an administrator's denial spelled out in the state code or on official sites. Treat it as a gray area. Review the applicable statute and ask the administrator about the claim process. C.R.S. § 38-13-903; C.R.S. § 38-13-906
- The mortgage overbid materials don't clearly say if a later law changed the six-month claim period. Confirm the current period with the office holding the overbid.
Frequently asked questions
The bottom line
I've been recovering surplus funds since 2013. That's over 2,000 cases and more than $100 million recovered for foreclosure victims across the country. Families can have a lot to manage when these funds matter. A clear, respectful next step can help. Start by asking the office holding the funds what it needs to review a claim.
If you want to learn how this business actually works, join the free Surplus Funds Masterclass at surplusfunds.ai, or join the free Surplus Funds Collective community on Skool at skool.com/surplusfunds.
This guide is education, not legal advice. Laws change, so check the official statute and talk to a licensed attorney in your state before you act.
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