Illinois Surplus Funds: A Recovery Agent's Claim Guide

Checked against the official state code and government office pages in October 2026.

For a mortgage foreclosure sale, proceeds first pay reasonable sale expenses and specified property costs. If the sale was pursuant to judicial foreclosure, claims are then paid in the priority order adjudicated by the court (735 ILCS 5/15-1512).

After a foreclosure judgment, Illinois law requires a judicial sale, except as provided in Sections 15-1402 and 15-1403. The law says a person conducts the sale, but it does not identify that person by role (735 ILCS 5/15-1507(a)). For a judicial foreclosure sale, the court-adjudicated claim order matters (735 ILCS 5/15-1512).

A separate process applies to the judicial tax deed auction in Section 22-42(f). It has its own notice and claim rules. There's also a county-as-trustee resale process. Sale proceeds pay county costs first, then surplus payments to previous owners, then taxing districts (35 ILCS 200/21-90).

For a mortgage foreclosure, proceeds first pay reasonable sale expenses. They also pay specified costs to secure, hold, maintain, and prepare the property. For a judicial foreclosure, claims are then paid in the priority order decided by the court. Any surplus goes to the person appointed to conduct the sale. That person holds it until a court order directs distribution (735 ILCS 5/15-1512).

The law requires written notice to the parties about the surplus amount. A party must get a court order to distribute it. Owners or mortgagors and lienholders may have interests. No one is named as the automatic recipient of all remaining funds.

The court-appointed sale officer holds mortgage surplus until a court orders its distribution. Without an order, the law says the surplus is forfeited to the State (735 ILCS 5/15-1512).

For a judicial tax deed auction, the selling officer deposits surplus funds with the county treasurer (Section 22-42(f)). After a tax deed, a previous owner may also seek surplus equity through a county surplus equity fund. The county treasurer holds that fund as trustee. The award may be reduced by mortgages, liens, and specified taxes (35 ILCS 200/21-302, 35 ILCS 200/21-301).

For the tax deed auction, the owner at the time of sale may file a claim with the county treasurer or circuit court. The deadline is 3 years from the date on the notice (Section 22-42(h)). For surplus equity, certain claims have a two-year deadline. The deadline depends on the deed recording date or the law's effective date, depending on the claim situation (35 ILCS 200/21-302).

The unclaimed-property law caps finder agreement fees at 10% of the amount collected. Agreements made from when property is presumed abandoned until 24 months after payment or delivery are void, subject to the law's stated exception. On or after January 1, 2026, a finder must be licensed by the administrator (765 ILCS 1026/15-1302(b), 765 ILCS 1026/15-1302(a), 765 ILCS 1026/15-1303(a)). These rules cover unclaimed-property finder agreements. The law doesn't spell out if they apply to mortgage or tax-sale surplus claims.

• The mortgage surplus claim deadline isn't stated here. Ask the court or sale officer holding the funds about the claim process.
• The tax-auction law described here doesn't say where surplus goes after the claim period. Ask the county treasurer holding the funds.
• The law doesn't say if an agent or assignee may file for an owner. Ask the office handling the claim, and consider getting legal advice.
• The law doesn't establish that unclaimed-property finder rules apply to real estate surplus. Check with a licensed attorney before setting terms with a client.

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. These claims can be stressful for families, so clear communication matters. Start by finding out who holds the funds and what claim process applies. Then consider speaking with a licensed attorney before you act.

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.