Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
When a trustee’s sale of real estate in Idaho generates more money than is owed on the debt, the excess is called “surplus funds.” Under Idaho law, a person with an interest in those surplus funds must follow precise steps to claim them. Below is a step-by-step guide based on Idaho Code § 45-1508.
1. Confirm the Deadline (One-Year Statute of Limitations)
Idaho Code § 45-1508 requires any claimant to file a verified petition for surplus funds within one year after the trustee’s sale. Missing this one-year deadline usually results in forfeiture of the surplus to the county.
2. Identify the Correct County Sheriff’s Office
You must file your petition in the sheriff’s office of the county where the trustee’s sale occurred. County sheriff contact information is available on each county’s official website.
3. Prepare a Verified Petition
Your petition should include:
- A title such as “Petition for Distribution of Surplus Funds.”
- The full legal description of the property sold.
- The date of the trustee’s sale and total sale price.
- The amount owed on the debt at the time of sale.
- The exact amount of surplus funds claimed.
- Your name, address, and relationship to the property (e.g., former owner, junior lienholder).
- A statement verifying that the facts are true under penalty of perjury.
4. Attach Supporting Documents
Include legible copies of:
- The trustee’s deed or sale certificate.
- A closing statement or sale ledger showing the sale price and debts paid.
- Any recorded deed of trust, mortgage, or lien relevant to your claim.
5. File the Petition and Pay Fees
Submit the original petition and attachments to the county sheriff’s office. Fees vary by county but typically include a filing fee and a small processing fee. Request a stamped file-date copy for your records.
6. Notice and Hearing
After you file, the sheriff must set a hearing within 20 days and mail notice to the trustor, beneficiary, and any other lienholders at least 10 days before the hearing. See Idaho Code § 45-1508 (https://legislature.idaho.gov/statutesrules/idstat/Title45/T45CH15/SECT45-1508/).
7. Attend the Hearing
At the hearing, present your petition and supporting evidence. Interested parties may object. The sheriff will decide whether to approve your claim or distribute the funds among multiple claimants.
8. Receive Distribution of Funds
If the sheriff approves your petition, you will receive a check for the approved amount. Processing times vary by county.
Helpful Hints
- Verify the trustee’s sale date on the trustee’s deed.
- Keep certified copies of all filings and proofs of service.
- Confirm county sheriff fees and acceptable payment methods in advance.
- Review Idaho Code § 45-1508 thoroughly: https://legislature.idaho.gov/statutesrules/idstat/Title45/T45CH15/SECT45-1508/.
- Consider consulting a real estate attorney to avoid procedural errors.