How to File a Petition for Surplus Funds after a Foreclosure Sale in Maine
Disclaimer: This article does not provide legal advice. It is for educational purposes only. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
Under Maine law, when a foreclosure sale yields more money than the mortgage balance and associated costs, the excess—called surplus funds—goes into the registry of the court. You can claim these funds by following the procedures set forth in Title 14 of the Maine Revised Statutes.
- Confirm Surplus Deposit
The mortgagee must deposit surplus funds with the clerk of courts in the county where the property was sold. Verify the amount and availability by contacting the clerk’s office. See 14 M.R.S. §6322 (legislature.maine.gov/statutes/14/title14sec6322.html).
- Check Filing Deadline
You must file your petition within one year of the foreclosure sale date, unless the court grants an extension for good cause. See 14 M.R.S. §6324 (legislature.maine.gov/statutes/14/title14sec6324.html).
- Draft Your Petition
Prepare a written petition to the court clerk that includes:
- The foreclosure sale case number and property address
- Your name, address, and relationship to the property (e.g., former homeowner, lienholder)
- The amount of surplus funds claimed
- Facts and documents supporting your interest (e.g., promissory notes, liens, payment records)
- File the Petition
Submit the original petition and any required filing fee to the clerk of courts where the sale occurred. The clerk will stamp your petition and assign a docket number.
- Serve Notice on Interested Parties
Within the time frame set by the Maine Rules of Civil Procedure, serve a copy of your petition on:
- The mortgagee or foreclosing party
- Any other person who filed a claim with the clerk
Proof of service must be filed with the clerk.
- Attend the Hearing
The clerk will schedule a hearing date. Appear in court with originals of all supporting documents. Be prepared to explain why you are entitled to all or part of the surplus.
- Obtain Court Order and Collect Funds
If the court approves your petition, it will issue an order directing the clerk to disburse the funds to you or to multiple claimants in priority order. Present the order to the clerk to receive payment.
Helpful Hints
- Track deadlines carefully—missing the one-year window can bar your claim.
- Gather clear documentation of your interest in the property before filing.
- Visit the county clerk’s office early to confirm filing fees and local procedures.
- Serve all parties properly and file proof of service to avoid delays.
- Consider consulting an attorney if multiple claimants or complex liens exist.