How to File to Claim Surplus Foreclosure Proceeds in Illinois

Disclaimer: This is general information and not legal advice. Laws change and facts matter. Consult a licensed Illinois attorney for advice about your specific situation.

Detailed Answer — How to seek surplus sale proceeds after a foreclosure in Illinois

If a foreclosure sale of your mother’s property produced money left over after paying liens and sale costs (called “surplus proceeds”), Illinois law allows certain people to ask the court to determine who is entitled to those funds and to order payment. Below are the practical steps, typical documents, and courtroom procedures you will likely encounter in Illinois.

1. Confirm whether surplus money exists and where it is held

• Get the foreclosure case number and county where the sale occurred. If you do not know them, contact the circuit court clerk where the property is located.
• Ask the clerk or review the case file to find the sheriff’s sale report and the “certificate of sale” or distribution that shows whether sale proceeds exceeded the amounts owed. The clerk’s office will also tell you whether any surplus was already paid out or deposited with the court.
• Typical outcome: if the sale produced a surplus the sheriff or buyer normally files a report and the court can order distribution of those funds.

2. Determine who has legal standing to claim the surplus

• Priority typically goes to the property owner (or the owner’s estate) and then to other lawful claimants (heirs, judgment lienholders, etc.).
• If your mother is deceased, the person entitled is usually the estate (through the personal representative) or an intestate heir once the estate is opened. If the property was held jointly, a surviving joint owner may have rights.
• If someone else (a purchaser, mortgagee, or lienholder) filed a claim or the clerk already paid out funds, the court may require contest resolution through a hearing.

3. Consider opening a probate estate if the owner is deceased

• If your mother died and no personal representative (executor/administrator) was appointed, you will often need letters testamentary or letters of administration to receive funds from a court. That requires opening a probate case in the county where she lived or where the property is located.
• Small amounts sometimes have simplified procedures, but most banks and courts will want formal authority to pay estate funds.

4. File the proper motion or petition in the foreclosure case

1. File in the same circuit court case where the foreclosure was handled (the foreclosure cause number and judge will be on the foreclosure papers).
2. Typical filing is titled a motion or petition to determine entitlement to surplus proceeds, or a petition for turnover/disbursement of surplus funds. The document should explain who you are, your relationship to the decedent or owner, the basis of your claim (owner, heir, personal representative), and what relief you seek (an order directing the clerk or sheriff to pay you the surplus).
3. Attach documentary proof: death certificate (if owner deceased), will or probate papers (if any), letters of office (if you are a personal representative), proof of ownership (deed, tax bills), the sheriff’s sale report, and any receipts showing amounts paid at sale.
4. File the motion with the circuit court clerk and pay the required filing fee or request a fee waiver if eligible.

5. Serve notice on interested parties

• Illinois court rules and the foreclosure judgment require notice to all parties who have an interest in the foreclosure case and anyone who might claim the surplus (lienholders, the mortgagee, the purchaser at sale, known heirs). Follow local rules for service (personal service or mail as required).
• The clerk can tell you who is listed as parties in the foreclosure file and the addresses for service.

6. Prepare for and attend the hearing

• The court will set a hearing date. At the hearing you will present evidence supporting your entitlement: sworn testimony, copies of documents, and any probate orders if applicable.
• If the court finds you are the rightful claimant, it will enter an order directing the clerk or sheriff to disburse the surplus to you. The court may issue that payment through the clerk of court or direct the sheriff depending on local practice.

7. If there is a dispute or claim is denied

• Other claimants may contest your petition. The court resolves competing claims based on evidence and statutory priorities.
• If the court denies your petition you may have appeal rights—talk to an attorney quickly because appeal deadlines are short.

8. Statutes and court rules to watch

Foreclosure procedure and distribution of sale proceeds are governed by the Illinois Code of Civil Procedure (735 ILCS 5/). Specific sections address foreclosure sale procedures and distribution of proceeds. For the exact statutory language and procedure references, see the Illinois General Assembly Code of Civil Procedure: 735 ILCS 5/ (Code of Civil Procedure). Also consult court self-help resources at the Illinois courts: illinoiscourts.gov – Self Help.

Checklist: Documents and information to gather

• Foreclosure case number and county (from foreclosure judgment or sheriff’s sale paperwork)
• Sheriff’s sale report and any distribution report
• Deed and property tax bills showing ownership
• Death certificate of the owner (if applicable)
• Will and probate papers, or letters of office for personal representative
• Photo ID and proof of relationship to decedent (birth certificate, family records)
• Copy of the motion/petition you will file and proof of service on all parties

Helpful Hints

• Start at the circuit court clerk’s office where the foreclosure case was handled. Clerks can provide case files, sale distribution reports, and local filing procedures.
• If your mother died without an estate opened, consider opening a simple probate to obtain authority to collect funds. Without letters of office, the clerk or bank may refuse to pay surplus funds to an individual heir.
• Act quickly. While there is no single universal deadline for all surplus claims, delays reduce the chance of recovery and can create practical obstacles. If funds were already distributed, seeking a return may require a different action.
• If the surplus is small, weigh the cost of hiring an attorney against the amount. Many counties have legal aid organizations or pro bono clinics that help with probate and court filings.
• Keep certified copies of all documents and a service return showing who you gave notice to and when.
• If the situation involves complicated title issues, multiple creditors, or suspected fraud, consult an attorney experienced in Illinois foreclosure and probate law.

For more detailed statutory language, see the Illinois Code of Civil Procedure (735 ILCS 5/) at the Illinois General Assembly website: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=1986&ChapterID=57.

Again, this information is educational only and not a substitute for advice from a licensed Illinois attorney who can review your specific facts and guide you through filing, service, hearings, and any probate steps.