Tax Sale Refunds are created from a local government tax auction. Those tax auctions come about due to property owners, for whatever reason, being delinquent in paying their property taxes. When the property is at auction, the starting bid is the amount of tax due to the government entity. Once the winning bid is received there can be an overage if the sale amount was more than the taxes due. The prior owner is usually notified by letter at the old address that there is an overage, but by the time that happens the prior owner is no longer residing at the property and usually is never aware that they are entitled to the excess proceeds. 

Mortgage Foreclosure Refunds are created when lenders have property sold at auction due to property owners, for whatever reason, being delinquent in paying their mortgage loan installments. When the property is at auction it is sold to the highest bidder. The difference of the unpaid mortgage loan and the selling price of the foreclosed property is where an overage is created. The prior owner is usually notified by letter at the old address that there is an overage, but by the time that happens the prior owner is no longer residing at the property and usually is never aware that they are entitled to the excess proceeds. An exception is that the owner is entitled to the excess proceeds less any lien encumbrances where other creditors may have first-priority to recovery on other unpaid loan agreements. When other entities have claims to the property it can complicate recovery and it is wise to have professionals assistance in the fight to reclaim what is lawfully yours.