What steps are required to file a petition claiming surplus funds from a foreclosure proceeding in Michigan? | Michigan Estate Planning

Disclaimer:<\/strong> This article is for educational purposes and does not constitute legal advice.<\/p>

Detailed Answer<\/h2>

After a foreclosure sale in Michigan, the court holds any sale proceeds exceeding the debt and costs. A person who claims an interest in those surplus funds must petition the circuit court in the county where the sale occurred. Michigan law requires this process under MCL 600.3240<\/a>.<\/p>

Confirm Eligibility and Deadline<\/strong>
You must file within 12 months after the sheriff’s sale. Missed deadlines normally bar your claim.<\/li>
Prepare the Petition<\/strong>
Draft a petition titled “Petition for Distribution of Surplus Funds.” Include:

Your full name and contact information<\/li>
Your interest in the surplus (e.g., lienholder, former owner)<\/li>
Date of foreclosure sale and amount of surplus<\/li>
Brief statement of facts and legal basis<\/li><\/ul><\/li>
Attach Supporting Documents<\/strong>
Attach copies of:

The foreclosure sale report or sheriff’s deed<\/li>
Your mortgage, lien, or other claim document<\/li>
Proof of identity<\/li><\/ul><\/li>
File with the Circuit Court Clerk<\/strong>
File the petition and attachments in the circuit court where the sale occurred. Pay the filing fee. Obtain a case number and filing stamp.<\/li>
Serve Interested Parties<\/strong>
Serve a copy of the petition and summons on:

The foreclosure plaintiff (lender)<\/li>
The sheriff who conducted the sale<\/li>
Any other known claimants<\/li><\/ul>Follow Michigan Court Rule 2.105.<\/li>
Proof of Service<\/strong>
File affidavits or certificates of service with the court promptly.<\/li>
Attend the Hearing<\/strong>
The court will schedule a hearing, typically within 28 days. Present evidence supporting your claim. Answer any questions from the judge.<\/li>
Obtain and Submit Court Order<\/strong>
If the court approves your petition, it will enter an order directing the clerk to disburse funds. Submit a certified copy to the clerk’s office.<\/li>
Collect Funds<\/strong>
Once the clerk processes the order, you may collect your share of the surplus funds.<\/li><\/ol>

Helpful Hints<\/h2>

Verify all deadlines to preserve your claim.<\/li>
Keep a detailed file of all documents and communications.<\/li>
Use certified mail or personal service to track delivery.<\/li>
Prepare a clear timeline of all foreclosure events.<\/li>
Consider consulting a foreclosure attorney for complex claims.<\/li>
Review local court rules for additional requirements.<\/li><\/ul>