Surplus funds, also known as excess proceeds, are money left over after a property is sold through a tax sale or foreclosure sale for more than the amount needed to satisfy outstanding debts, taxes, fees, and other authorized costs.For example, if a property is sold for $150,000 and the total amount owed is $100,000, there may be $50,000 in surplus funds. Depending on state law and the specific circumstances of the sale, those remaining funds may be available to the former property owner or other legally entitled parties.