There is a surplus of them, as e-commerce is growing. 

Throw surplus cash out of state at cheaper real estate markets to try and get some form of passive income? 

I have a job that gives me a decent surplus of savings so I can afford to expensive than I currently pay, I will also being doing this with my partner.

My market has a surplus of apartments and a shortage of single family rentals but I understand your point.

Depending on the jurisdiction, surplus funds from an second mtg auction, assuming no other junior liens, either goes to the previous owner OR to pay off the 1st mtg......these procedures are state specific and may depend on judicial verses non judicial foreclosures.

Using that numbers it bring me up to a surplus of $137.30 each month. 

 No one knows what state you are in, so no one knows which state laws apply.But generally, a “hearing for the release of funds” means the property sold at auction for more than the foreclosing lender was owed, so it is this “surplus of funds” that typically the hearing is about to determine who gets the left over money.  

@Chris Lubrano consistent with the comments above All Risks is a reputable Excess and Surplus Lines broker.

@Chris Platis That's the only true source...the inventory fluctuates greatly with location and state of economy...more depressed cities or locations with declining populations will have surplus...generally speaking, foreclosures are non-existent nowadays.

CA's been in surplus for so many years now...