Final answer:
Any surplus funds from a post-foreclosure auction, after satisfying all liens, belong to the former homeowner. If they cannot be found, the funds may be held and eventually escheated to the state.
Step-by-step explanation:
After a post-foreclosure auction, any money left over once all lenders with liens on the property have been paid in full is typically disbursed to the mortgagor or homeowner. This is what's known as a surplus or excess funds. Should the foreclosure sale produce more funds than necessary to cover the mortgage and any other liens, these excess proceeds belong to the former homeowner after all debts, including possible junior liens and foreclosure expenses, have been satisfied. If the former homeowner is not locatable, the funds may be held for a certain period as dictated by state law before escheatment to the state