If there be surplus money remaining, after payment of the amount due on the mortgage, lien, or incumbrance, with costs, the Court may cause the same to be paid to the person entitled to it, and in the meantime may direct it to be deposited in Court.
§ 727.Surplus Money Remaining After Payment of Amount Due
Title 10. Actions In Particular Cases · Chapter 1. Actions for the Foreclosure of Mortgages · Enacted 1872 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 727 lets the court direct any surplus remaining after a foreclosure sale, once the mortgage debt and costs are paid, to be paid to whoever is entitled to it, or held on deposit with the court in the meantime.
Full Text of § 727
Plain-English Summary
A foreclosure sale sometimes brings in more than the debt, costs, and expenses require. Section 727 tells the court what to do with that leftover money: pay it to the person entitled to it, or, until the claims to it are sorted out, order it deposited with the court.
The section doesn't say who counts as entitled — that follows from the priority of liens and interests in the property, worked out through the same action that produced the sale under § 726. It gives the court a mechanism to hold the surplus safely while competing claims to it are resolved.
Frequently Asked Questions
What happens to money left over after a foreclosure sale pays off the debt?
Under § 727, the court may direct the surplus to be paid to the person entitled to it, and may order it deposited with the court in the meantime.
Does § 727 decide who is entitled to the surplus?
No. It only authorizes the court to disburse or hold the surplus; entitlement is determined separately, based on the priority of the parties' interests in the property.
Amendment History
Enacted 1872.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: surplus funds foreclosure sale californiaexcess proceeds mortgage foreclosure