Surplus Equity

Definition

The value of a property that exceeds the amount of debt owed on it. In a tax foreclosure, surplus equity is the money left over after the government collects what it is owed in back taxes, penalties, and fees.

Examples

• •If Timothy Pung owed $5,000 in taxes but his property sold for $80,000, the $75,000 difference would be 'surplus equity' that his estate argues belonged to him, not the county.

Related Terms