When a foreclosed home sells at auction for more than what the homeowner owed, something unusual happens. That extra money doesn't vanish. By law, it belongs to the former homeowner. But here's the issue: most people never claim it.
Right now, between $5 to $8 billion sits in county courthouses, trustee accounts, and state programs across America. This is surplus equity from foreclosure sales, and it's growing every month. For decades, this was a hidden market that only small specialty firms knew how to navigate. Big investors stayed away because the system was too complicated and lacked proper structure.
That's where Milan CM comes in. They saw a massive gap in the market and built the infrastructure to fix it.
The after-foreclosure surplus market represents one of America's last untapped real estate opportunities. The data reveals a compelling picture. In 2023, foreclosure filings increased 34% compared to the previous year. Perhaps most notable: 81% of homeowners currently in foreclosure still have positive equity in their properties. Between January and November 2025, foreclosure numbers climbed for nine consecutive months.
The mechanics are straightforward. During foreclosure, a home goes to auction. When it sells for more than the outstanding mortgage balance plus associated fees and costs, that extra amount is called surplus equity. In 2023, the Supreme Court ruled unanimously in Tyler v. Hennepin County that this surplus belongs to the homeowner, not the government. Every single justice agreed on this point.
Yet $5 to $8 billion sits unclaimed. Because the process is incredibly fragmented. Each county manages foreclosure surplus through different procedures. Many former homeowners never learn these funds exist. Those who do often lack the expertise or resources to complete the complex recovery process. Deadlines differ by jurisdiction, and unclaimed funds ultimately transfer to state coffers.
These billions of dollars in verified funds are publicly documented, but they are practically inaccessible to both individual homeowners and institutional investors looking for efficient entry points.
To understand why Milan CM's solution matters, you need to know what kept serious investors out of this market for years.
The first barrier is jurisdictional complexity. Each state has different foreclosure laws. Even within states, counties follow different procedures. The process that works in Los Angeles won't work in Miami. What succeeds in Dallas fails in New York City. There's no standardized system.
The second challenge is data access. In normal real estate deals, you can search standardized title records and public databases. Surplus equity data isn't like that. Some counties post basic information online. Others require physically visiting the courthouse. Many still use paper records that have never been digitized. Finding opportunities means manually searching thousands of separate systems.
The third obstacle is compliance. This isn't simply buying a distressed property. It means acquiring the legal right to claim funds from government entities, each with specific forms, deadlines, and documentation requirements. Miss one procedural step, and the entire claim can be rejected. Get the paperwork wrong, and months of work are wasted.
The fourth issue is reputation. For years, the surplus recovery business attracted small operators, some with questionable practices. This gave the whole industry a bad name and made it difficult for institutional investors to participate without worrying about their reputation.
These barriers created an unusual situation: a multi-billion-dollar market that technically anyone could access, but practically speaking, almost no one could navigate successfully at scale.
Milan CM took a completely different approach. Instead of working within the broken system, they built new infrastructure from the ground up, designed specifically for institutional investors.
The company created a centralized platform that aggregates surplus equity data from across the country. This solves the scattered data problem. For qualified members, it means they can see real opportunities with complete transparency. There are no blind investment pools. No subscription agreements that lock up money in unknown deals. Instead, members look at specific investment tranches, review all the underlying data, and only commit money when they're ready.
This structure solves a major concern for institutional investors. Every investment opportunity comes with full documentation, clear timelines, and transparent fees. structures. Investors know exactly what they're buying before committing any capital.
The compliance system is equally sophisticated. Milan CM maintains specific protocols for each state, ensuring every claim follows the exact requirements of that jurisdiction. This matters enormously. One small procedural mistake can mean the difference between successfully recovering funds and having a claim rejected completely.
The platform also provides deal-by-deal selection. Investors aren't forced to buy into a package of unknown claims. They can evaluate each opportunity individually, assess the risk and return profile, and make informed decisions. It's the kind of transparency and control that institutional investors require but couldn't find in this market until now.
Since launching this approach, Milan CM has recovered over 1,000 claims across the country, with typical payout timelines running between 70 and 120 days. Their nationwide coverage means they can identify opportunities in any jurisdiction, not just a handful of counties.
From an investment standpoint, after-foreclosure surplus equity has unique characteristics that set it apart.
First, the duration is short. Surplus equity claims typically resolve in 90 to 180 days, compared to multi-year lockups in many alternative investments. Capital cycles faster with significantly better liquidity.
Second, the collateral is government-held. Surplus funds sit in court custody or with court-appointed trustees in verified, protected accounts. The challenge isn't whether the funds exist—it's navigating the bureaucratic claim process.
Third, asset values are stable. The surplus amount doesn't fluctuate with interest rates, economic cycles, or market sentiment. A $50,000 surplus remains $50,000 regardless of market conditions.
Fourth, competition remains limited. Institutional players are only beginning to enter this market. Small operators lack the infrastructure to scale, creating an opportunity for sophisticated investors with proper access.
Fifth, it's legally mandated. The Tyler v. Hennepin decision affirmed that surplus equity belongs to the homeowner by constitutional right—established law confirmed by the Supreme Court.
The 2023 Supreme Court case Tyler v. Hennepin County transformed this market. Geraldine Tyler, a 94-year-old Minnesota woman, lost her home over $15,000 in unpaid property taxes. The county sold it for $40,000 and kept everything. The Supreme Court unanimously ruled this unconstitutional, declaring the government cannot retain surplus proceeds beyond what's legally owed. All nine justices agreed it violated the Fifth Amendment's Takings Clause.
For the surplus equity market, this decision removed all legal ambiguity and spotlighted billions in unclaimed courthouse funds. State legislatures began reforms. Media coverage expanded. For Milan CM, Tyler v. Hennepin validated their entire business foundation and opened doors for institutional participation. Investors could now proceed with Supreme Court-backed legal certainty.
Milan CM's founding team brings proven expertise. Since 2015, they've closed over $70 million in acquisitions across private equity, real estate, and B2B services. In 2021, they approached the after-foreclosure market as institutional builders, not opportunistic traders. Milan CM built the first platform bringing institutional standards to this market, creating infrastructure that allows serious capital to access a previously unreachable asset class.
Their private equity and real estate background revealed what institutional investors require - transparency, control, clear documentation, and reliable processes. Milan CM delivers these standards with the professionalism investors expect from any institutional-grade opportunity. The track record proves the model works. Over 1,000 claims recovered. Consistent 70-120 day payout timelines. Coverage across all 50 states. These are actual results from real transactions.
Markets this inefficient don't stay that way. As infrastructure improves and capital flows in, early advantages naturally compress. Signs are already visible. Foreclosure activity keeps rising. More investors are asking questions. State legislatures are reviewing procedures post-Tyler v. Hennepin. Media attention grows.
The market becomes more competitive. Consider other once-obscure alternative markets: tax liens, structured settlements, and distressed debt. Once institutional capital entered with proper infrastructure, returns compressed. The same pattern will likely repeat here.
Milan CM's early entry provides a significant advantage. They've built the systems, established compliance protocols, developed relationships with courts, and proven the model at scale. New entrants must start from scratch. For investors, the choice is clear: act now with limited competition and strong advantages, or wait until the market matures and early benefits disappear.
Milan CM begins where the county courthouse ends, at the verified surplus funds that are held and waiting. The surplus equity keeps accumulating in courthouses across the country. The funds are real, the legal right is established, and the Supreme Court has confirmed it.
Milan CM created a platform solving the data problem, handling compliance complexity, and delivering institutional-grade standards. For institutional investors seeking alternative assets with short duration and government-backed collateral, after-foreclosure surplus equity represents a genuine opportunity backed by billions in verified funds. The question is whether investors will act while structural advantages remain available, or wait until the market matures and early benefits compress.
Learn more about institutional access to after-foreclosure assets at milancm.com. Qualified investors can explore how to access this market through a transparent, deal-by-deal platform with full data visibility and state-specific compliance.
