Disclaimer: This is educational information only and is not legal advice. Consult a licensed New Jersey attorney before acting on legal matters.

Short answer — the essential steps

1. Confirm a surplus exists and where it is held (county sheriff or court).
2. Identify who has priority to the surplus (former owner, prior lienholders, judgment creditors).
3. Gather proof of your right to the surplus (title documents, payoff statements, ID, foreclosure docket number).
4. Prepare and file a verified claim or special proceeding in the foreclosure case asking the court to release funds to you.
5. Serve the required parties (sheriff, plaintiff/lender, other interested parties) and schedule a hearing if required by the court.
6. Attend the hearing and submit supporting evidence; if successful, obtain a court order directing payment of the surplus.

Detailed answer — step-by-step process under New Jersey law

1. Confirm there are surplus funds and find their location

After a sheriff’s sale, if the sale price exceeds the amount owed (mortgage, costs, prior liens, taxes), the sheriff may return a surplus. In many counties the sheriff deposits surplus funds with the Superior Court or retains them in a county account. Start by contacting the county sheriff’s office that conducted the sale and the Superior Court Civil Division that handled the foreclosure. You will need the foreclosure docket number and the sheriff’s sale certificate or report of sale.

2. Determine who can claim the surplus and the priority order

Priority to any surplus follows the same general priority that governs liens and judgments. Common claimants (in order of likely priority) are:

• Taxes and municipal liens (where applicable)
• Senior mortgages and liens that existed before the foreclosing lien
• Judgment creditors with valid liens against the property
• The former record owner (the homeowner) for any remaining balance after lien payments

The specific determination of priority is a legal question the court will resolve. For procedural rules on foreclosure sales and distribution, see the New Jersey Court Rules for Foreclosure (Rule 4:64): NJ Court Rule 4:64.

3. Collect documentation to prove your claim

Typical documents to assemble:

• Foreclosure docket number and sheriff’s sale paperwork (certificate of sale, report, deed).
• Proof of ownership at the time of sale (deed, title policy, tax bills).
• Payoff statements, mortgage or lien documents showing amounts owed and priority dates.
• Government-issued ID and proof of address.
• Affidavits or sworn statements explaining your interest and the basis of your claim to the surplus.

4. Prepare the correct filing: claim, special proceeding, or motion

In New Jersey, surplus claims are handled by filing a verified pleading or motion in the foreclosure case. What you file depends on local practice and the court rule applied. Common filings include:

• A verified “Claim for Surplus Funds” or a praecipe for a special civil proceeding in the foreclosure docket.
• An Order to Show Cause or motion asking the court to determine entitlement and direct payment.

Be sure the filing includes: the foreclosure case caption and docket number, the amount you claim, a clear description of your interest, and attached supporting documents and a sworn affidavit.

5. Serve all interested parties

After you file, serve copies on the sheriff (or county official holding the funds), the foreclosing plaintiff or its attorney, and any other recorded lienholders or parties listed in the foreclosure case. Local rules may require specific service methods (certified mail, personal service). Check the filing instructions on the Superior Court clerk’s website for the county where the foreclosure occurred and follow New Jersey Court Rules for service procedures: NJ Court Rules.

6. Attend the hearing and present evidence

The court will schedule a hearing or resolve the matter on the papers. At the hearing be prepared to:

• Explain your basis for claiming the funds and the amount you claim.
• Present original or certified copies of your documents and testify (or have a witness) under oath if required.
• Respond to competing claimants and questions from the judge.

If the court finds in your favor it will issue an order directing the sheriff or county to pay the surplus to you or to distribute it among claimants in the order the court sets.

7. Obtain payment and close the matter

After entry of a court order, the sheriff or county will usually disburse the funds according to the order. The sheriff may require additional paperwork (W-9, affidavit of identity, or release forms). Keep copies of the court order and all receipts for your records.

Statutes and rules to consult

Key New Jersey authorities to review:

• N.J. Court Rule 4:64 (foreclosure by sale) — procedural rules governing foreclosure sales and distribution: https://www.njcourts.gov/attorneys/rules/r4-64.html
• New Jersey statutes and county sheriff procedures governing sheriff sales and the return of surplus funds. For state statutes and chapter listings, search the New Jersey Legislature site: https://www.njleg.state.nj.us/

Timing and deadlines

There is no single uniform deadline that applies in every county for claiming a surplus: some counties will require claimants to act promptly after the sale or after receipt of notice, and statutes of limitations for civil claims (commonly up to six years for certain actions) could apply to disputed claims. If you delay, unclaimed funds could be administratively transferred or become harder to recover. Contact the sheriff and court early and consider acting within weeks to months of learning of the surplus.

When to get help

If competing claimants exist, priorities are unclear, the amount is substantial, or you are unsure how to plead or serve parties, consult a New Jersey attorney with foreclosure or real estate experience. An attorney can draft the verified pleading, handle service and scheduling, and represent you at the hearing. If a creditor or lender is opposing your claim, counsel can protect your rights.

Helpful hints

• Start with the county sheriff’s office where the sale occurred — they often keep records and can tell you whether surplus funds exist and how they handle disbursements.
• Get the foreclosure docket number and all sheriff sale paperwork early — these items are essential for filing.
• File a verified affidavit that clearly explains your legal basis for the funds (ownership, lien priority, payments you made, etc.).
• Serve everyone listed in the foreclosure case and any recorded lienholders. Missing a party can delay or invalidate relief.
• Bring originals of deeds, liens, and payoff documents to any hearing. The court will want primary evidence of priority.
• Be prepared for competing claims. The court decides priority based on recorded dates and legal lien priority rules.
• Ask the clerk whether the county requires additional forms (W-9, release forms, or identity verification) before paying funds out.
• If you cannot locate averted funds, check state unclaimed property resources — but first exhaust court and sheriff inquiries.