Detailed Answer
In Massachusetts, when a property sells at a foreclosure auction for more than the outstanding mortgage debt plus allowable costs, the excess amount becomes surplus funds. The process for identifying and claiming these funds follows Massachusetts General Laws:
- Mass. Gen. Laws ch. 244, § 14 requires the sheriff to deposit any surplus with the county treasurer and to notify all parties who recorded an interest and subscribed to the auction terms. View statute.
To determine if surplus funds remain after a foreclosure sale, an interested party should:
- Obtain the foreclosure case number: Contact the county clerk’s or probate and family court’s docket office where the sale took place. This number appears on the auction notice and sale report.
- Check the sheriff’s records: Many sheriff’s offices maintain online foreclosure sale listings. Look up the specific sale, then see if the final report mentions surplus funds.
- Search the county treasurer’s website or office: Under ch. 244, § 14, the sheriff deposits surplus with the treasurer. County treasurer websites often list unclaimed foreclosure surpluses by case number or property address.
- Review the Registry of Deeds: The registry records the sheriff’s return and the treasurer’s receipt for surplus deposits. Use the property’s book and page numbers or grantor/grantee index to locate the entry.
- Consult published notices: Foreclosure auctions and surplus notices appear in legal newspapers. Archives may be accessible online or at a local library. Notices typically state if a surplus exists and the deadline to file a claim.
An interested party must file a written application with the sheriff handling the foreclosure within 90 days after the sale, per ch. 244, § 14. If no claimant emerges, the treasurer holds funds for a statutory period, then may remit them to the Commonwealth.
Helpful Hints
- Keep the foreclosure sale date and case number handy when contacting offices.
- Bring photo ID and documentation of your interest in the property when filing a claim.
- Monitor county treasurer “unclaimed funds” pages regularly; some list downloadable spreadsheets.
- Review the auction terms in the notice for any special instructions about surplus claims.
- If you miss the 90-day deadline, consult an attorney—late claims may still be possible by court petition.