Author: Kyle R. Kawanami KC

Are you trying to enforce a judgment for a client and you found land, but someone already registered a mortgage ahead of your client? Or did your client take security as a second mortgage and it looks like there will be a surplus following sale? Either way, there may be some money left over for your client, and you’ll want to get it out of Court or from another law firm’s trust account. This paper explores how surplus funds deposited into court following a judicial sale in foreclosure proceedings are accessed and distributed. It outlines the practical steps required to have funds paid out of court or released from trust, with a focus on the relevant procedures, documentation, and best practices.

These materials were presented at LESA’s Foreclosures: How to Recover Money That Has Been Paid into Court or is Being Held by a Law Firm webinar on October 23, 2025.