Detailed Answer

When a property owner’s interest in real estate ends—whether through foreclosure, a tax‐lien sale or a court‐ordered sale in a divorce—the sale often generates surplus funds (sometimes called “overage” or “excess proceeds”). Under Arizona law, these surplus funds belong to anyone with a recorded legal interest at the time of sale, including a former spouse or a surviving spouse. To assert entitlement, the claim must follow the procedures set out in the Arizona Revised Statutes.

1. Identify the Type of Sale

• Foreclosure Sale: Conducted by the sheriff when a mortgage or deed of trust is in default. See A.R.S. § 33-811.
• Tax‐Lien or Tax Deed Sale: Administered by the county treasurer when property taxes remain unpaid. See A.R.S. § 42-18307.

2. Meet Filing Deadlines

Different deadlines apply depending on sale type:

• Foreclosure sales: File a claim within one year after the sheriff’s sale date. Arizona case law and local court rules may govern exact deadline.
• Tax‐lien sales: The county treasurer holds surplus funds for one year after the redemption period ends. Claimants must submit a written request within that year. See A.R.S. § 42-18307(C).

3. Prepare Your Claim Package

Your claim package should include:

• A completed claim form (available from the county treasurer’s office for tax sales or the superior court clerk for foreclosure sales).
• Certified copy of the divorce decree showing your property interest, or a certified death certificate and letters testamentary or letters of administration if you are a survivor.
• Recorded deed or other document proving your interest at the time of sale.
• A copy of the sale certificate or report of sale issued by the sheriff or county treasurer.

4. File in the Proper Office and Serve Notice

• For foreclosure surplus: File your claim with the Superior Court clerk in the county where the sale occurred. Pay any required filing fee.
• For tax‐lien surplus: Submit your claim to the county treasurer’s office. Include any filing fee prescribed by the county.
• Serve copies of your claim on all parties who hold recorded interests (lienholders, junior encumbrancers) at the time of sale.

5. Attend Any Hearing

If someone contests your claim, the court (or county treasurer) will set a hearing. Be ready to:

• Present original documents.
• Explain how your interest attached before the sale.
• Answer questions about the divorce decree or probate documents.

6. Obtain Disbursement

When the court or treasurer approves your claim, they will issue an order or warrant directing payment. You must present that order to the county treasurer (for foreclosure surplus) or the treasurer’s disbursement office (for tax‐lien surplus).

Applicable Arizona Statutes

• Foreclosure Surplus Funds: A.R.S. § 33-811 (Sheriff’s sale; distribution of proceeds) – azleg.gov/ars/33/00811.htm
• Tax‐Lien Surplus Funds: A.R.S. § 42-18307 (Surplus money; distribution) – azleg.gov/ars/42/018307.htm

Helpful Hints

• Act Quickly: Watch deadlines closely. Missing them can forfeit your right to claim.
• Keep Originals Handy: Courts and treasurers often require original certified documents.
• Verify Recorded Dates: Confirm the date your interest was recorded relative to the sale date.
• Read Local Rules: Each county may have specific forms and fee schedules.
• Consider Professional Help: An attorney can guide you through hearings and complex title issues.
• Monitor Court Notices: Stay alert for mailed hearing notices or requests for additional documentation.