What to do to claim surplus proceeds after a foreclosure in Colorado

Detailed Answer — step-by-step guide

This guide explains the usual steps people take in Colorado to locate and claim surplus (excess) funds after a foreclosure sale and how to file the court motion or claim that asks the court or public trustee to release those funds. This is a general, plain-language explanation; the exact process can vary depending on whether the sale was a judicial (sheriff) sale or a non-judicial public trustee sale and whether the decedent’s estate or an heir is making the claim.

Step 1 — Determine the sale type and who holds the funds

Colorado foreclosures can be handled two main ways:

Judicial foreclosure (sheriff’s sale): the sale is ordered by a court. Proceeds/excess are usually handled through the court clerk or sheriff’s office.
Non‑judicial foreclosure (public trustee sale): the public trustee runs the sale. Any excess proceeds are usually held by the public trustee until distributed.

Contact the county where the property was located and ask whether the sale was a public trustee sale or a sheriff’s sale, and which office currently holds the excess funds. Ask for the sale file and a written accounting or certificate of distribution showing the sale price, amounts applied to liens, and any reported surplus.

Step 2 — Identify the priority of claimants

Surplus funds are distributed by priority. Typical priorities include:

Senior mortgages and lien holders (paid first at the sale).
Junior lien holders (may still have claims against surplus).
Costs and fees (sale costs, trustee or clerk fees).
The former owner (the person who owned the property before the sale) — often entitled to any remaining surplus after all lienholders and costs are paid.

If the property owner (your mom) is deceased, the right to claim the surplus generally belongs to the estate (personal representative/executor) or to intestate heirs if no executor was appointed. The person asking for the funds normally must show legal authority (letters testamentary, letters of administration, or other proof of heirship).

Step 3 — Assemble the documents you will need

Gather these documents before you file any motion or claim:

Official record of the foreclosure sale (certificate of sale, confirmation order, or public trustee accounting).
Proof that the sale produced a surplus (letter or accounting from public trustee, sheriff, or court clerk showing excess funds).
Your proof of relationship and authority: death certificate, will (if any), letters testamentary or letters of administration from probate court, or a small‑estate affidavit (if allowed and applicable).
Identification for the claimant and any required notarized affidavits (affidavit of heirship, claimant’s affidavit).
Documentation of other lienholders (payoff statements, recorded releases) if available.

Step 4 — Choose the correct filing route

The filing route depends on the sale type and the local practice:

Public trustee (non‑judicial) sale: contact the county public trustee. Some counties have an administrative claim process to request release of excess funds; others will direct you to file a petition in the district court to determine rights to the surplus. The public trustee generally provides instructions and a list of documents required to release funds.
Sheriff’s sale / judicial foreclosure: file a motion or petition in the court that handled the foreclosure asking the court to order distribution of the surplus. In judicial foreclosure cases, Colorado civil procedure rules such as Rule 120 are commonly used in post‑sale distribution matters; check the court’s local procedures.

Useful official resources: Colorado courts rules are available at the Colorado Judicial Branch rules page: Colorado Courts: Rules. Colorado statutes and the Title for property/foreclosure are searchable at the Colorado General Assembly statutes page: Colorado Revised Statutes – Search.

Step 5 — Prepare and file the motion or application

Whether you file with the public trustee or in district court, your petition or motion should:

Identify the foreclosure case or sale by case number, property address, and recording information.
State who you are and your legal interest (e.g., personal representative of the estate of [name], heir by intestacy, etc.). Attach proof of that status.
Show the accounting of sale proceeds and how the surplus was calculated.
Ask the court (or public trustee) to determine your right to the surplus and to order payment to you (or to the estate) once your right is established.
Attach supporting exhibits (death certificate, letters of administration, affidavits, payoff statements, proof of identity).

File the motion in the correct county and pay any filing fee. If you file in court, you will normally need to serve notice on other parties who might claim the funds (mortgage holders, junior lienholders, known creditors). The court will set a hearing if required.

Step 6 — Court hearing, contested claims, and distribution

If no one objects, the judge (or public trustee where allowed) typically signs an order directing distribution of the surplus to the entitled person or estate representative. If other parties object, the court will hold a contested hearing to decide priority. The court will examine the paperwork, lien priority, probate status, and evidence of who legally represents the decedent’s estate.

Step 7 — If the owner is deceased and no probate exists

If your mom died and there is no opened probate case, you may need to open probate or obtain some form of small‑estate relief so you have legal authority to claim property of the decedent. The county court or district court where the decedent lived can advise on probate filings; the Colorado statutes and probate rules explain the required process. If the surplus is small, Colorado law may allow simplified procedures, but you should verify county thresholds and rules.

Timing and deadlines

Act promptly. Counties may have administrative deadlines, and various statutes of limitation or rules can affect stale claims. Even if a claim might still exist, delay adds complications (competing claimants, difficulty locating documentation). Immediately contact the public trustee or court clerk where the sale occurred to learn any local deadlines or required forms.

When to hire an attorney

Consider consulting a Colorado attorney if:

There are multiple competing claimants or complicated lien priority issues.
The decedent’s estate has not been opened and probate is required.
You need help preparing pleadings, serving parties, or presenting at a contested hearing.

You can locate a local attorney through the Colorado Bar Association lawyer referral service or county bar association. Many county courthouses also have self‑help centers that provide forms and guidance for handling simple, uncontested matters.

Helpful Hints

Start at the county office that ran the sale (public trustee or sheriff). They can confirm whether a surplus exists and what steps they require.
Get a certified copy of the death certificate if claiming as the decedent’s representative or heir.
If you are the executor or administrator, get and attach the court’s letters testamentary or letters of administration to your motion — courts rely on those documents to recognize authority.
If you aren’t sure who has priority, ask the public trustee or clerk for a list of recorded liens and a payoff accounting from the sale file.
Keep a complete paper and digital file of every document you file and every communication with county offices and lienholders.
If you file a court motion, follow local court rules for formatting, filing, and service. Local court clerks can usually tell you the basic filing fee and service steps.
If you are handling this without an attorney, consider requesting plain‑language help from the court’s self‑help center before filing so your papers include the documents a judge expects.

Where to find official Colorado resources

Colorado Judicial Branch — court rules and local court information: https://www.courts.state.co.us/Courts/Rules/Index.cfm?Page=RulesList&Menu=Rules
Colorado Revised Statutes — searchable official statutes (search for “foreclosure,” “public trustee,” “probate,” etc.): https://leg.colorado.gov/statutes
Contact the county public trustee or sheriff where the property was located (county contact info is on the county’s official website).

Important disclaimer

This article is for general informational purposes only and is not legal advice. It does not create an attorney‑client relationship. Laws and local procedures change. For advice about your specific situation and help filing motions or opening probate, consult a licensed Colorado attorney.