STR is an emerging segment of the hotel world, but still well within in that "surplus disposable income spending" world.Anyways, bigger picture.

What is interesting is that by creating surplus inventory they could force the resale market to suffer while they rake in their deposits.  

There has been 7 instances in US history in which the US federal government ran a balanced budget or surplus and each time was directly followed by a recession or depression.

Unfortunately, with the gas and oil production slowdown, many people are leaving this area causing  a bit of a housing surplus. 

All surplus goes to junior interests in priority of title.  

If so, would the bank just give me a check of the surplus, in this case $28,000?

Well from an economic standpoint, there's a surplus of millennials moving out of Dad & Mom's house, there are immigrants (illegal and legal) entering the country in droves, home prices are on the rise, there is a low supply of housing, and apartment firms are building or renovating a great product with desirable amenities.

The county's court of clerks notifies the IRS, and yes I discovered the letter they sent them on 12/30/15 notifying them of the surplus from the sale and that they would have 120 days to inform the county if they wanted any of those funds.  

Are homes getting multiple offers or still a surplus on inventory side?

Surplus cashflow goes into more aggressive mutual funds and are also planned to be used for future purchases.Thanks for any feedback and sorry for the long post!