Claiming Surplus (Excess) Proceeds After a Michigan Tax Foreclosure: FAQ

Disclaimer: This is general information only and not legal advice. I am not a lawyer. For specific legal guidance about claiming surplus funds in Michigan, consult a licensed Michigan attorney or the county treasurer’s office where the property was foreclosed.

Quick answer

If a county tax foreclosure sale on a Michigan property produced more money than was needed to cover unpaid taxes, interest, penalties, fees and costs, the county normally holds the excess (called surplus or excess proceeds). The former owner, a secured creditor with a prior lien, an heir, the personal representative of the owner’s estate, or another person who can show a legal claim to the property may be entitled to that surplus. To collect it you must locate the funds with the county treasurer, provide documents proving your right to the money, and file any required claim forms. If the county refuses to release funds, you may need to file a court action in Michigan to recover them.

Detailed answer — how the process works in Michigan

1. What are surplus (excess) proceeds?

When the county sells property for unpaid taxes, sale proceeds first pay the delinquent taxes, interest, penalties, fees, and the county’s costs. Any remaining funds are surplus. Michigan’s tax foreclosure rules and procedures are governed by the General Property Tax Act; see MCL 211.78k and related sections for the statutory foreclosure and sale procedures: MCL 211.78k et seq. and the chapter for property tax law: MCL Chapter 211.

2. Who may be entitled to the surplus?

The former record owner(s) of the property.
Heirs or beneficiaries if the owner is deceased (with appropriate probate documents or affidavits).
A personal representative or executor of the estate (with letters of authority or comparable court documents).
Prior secured creditors or lienholders whose liens survive the tax foreclosure, if their lien has priority and they can prove a right to the funds.

3. How to find out whether surplus funds exist

Contact the county treasurer’s office where the property was located. The treasurer handles delinquent-tax sales and keeps the sale records and any surplus funds (or can tell you where the funds were deposited).
Ask the county register of deeds or the treasurer for the foreclosure sale record, the sale price, and the distribution of proceeds.
Check the county’s public sale/foreclosure notices and auction results—these will often show whether a sale produced excess proceeds.

4. Documents you will typically need to claim surplus

Counties vary in their internal procedures, but the following items are commonly required:

Valid photo ID for the claimant (driver’s license or state ID).
Proof you are the owner or have legal authority: recorded deed, recorded will, probate letters of authority, certificate of appointment, or an order from probate court.
If the owner is deceased: death certificate and probate documents or a small-estate affidavit if the county accepts it for the amount involved.
If you are an heir but probate has not been opened: an affidavit of heirship or a court order declaring heirs may be required.
If you claim as holder of a lien: documentation of the lien, date of recording, and proof of priority (mortgage, judgment, etc.).
If acting under a power of attorney: the original or certified copy of the durable POA and identification for both principal and agent, if the county accepts POAs for this purpose.
Copies of the foreclosure sale paperwork showing the sale and the amount collected (the county can often supply these).

5. Steps to claim the surplus

Locate the right county office (usually the county treasurer). Ask whether the county currently holds excess proceeds from the specific sale.
Request the county’s required claim form and a list of supporting documents. Many counties have a written claim procedure or form; follow it exactly.
Prepare and submit the requested paperwork. Include certified copies of probate documents if applicable. Attach a brief cover letter explaining your relationship to the former owner and your legal basis for the claim.
If the county approves the claim, it will release the funds to you by check or other instrument. The county may require a small processing period and identity verification before release.
If the county denies the claim, ask for the denial in writing and the reasons. You may be able to cure any documentary defects. If the county refuses without justification, consider consulting an attorney about filing a court action to recover the funds.

6. Special issues when the owner (your mother) is deceased

If your mother died before or after the foreclosure, the path depends on whether her estate has been opened in probate:

If there is a probate estate: the personal representative (executor/administrator) should file the claim and provide letters of authority and a death certificate.
If there is no probate and the surplus is relatively small: some counties accept an affidavit of heirship or a small estate affidavit to release funds to heirs; check local rules and Michigan probate court thresholds.
If there are multiple heirs: the county may require a court order, an agreement signed by all heirs, or distribution through probate.

7. Timing and deadlines

Michigan statutes set the foreclosure and sale procedures, but counties have administrative practices about processing surplus claims. There is no single short-form statewide “one-size-fits-all” claim form or single universal time limit in every situation—so act quickly. Promptly contacting the county treasurer and submitting a complete claim maximizes your chance of recovery. If you wait too long, funds may be moved to another account or the county may impose additional administrative hurdles.

8. If the county refuses or a dispute arises

If the county refuses to release excess proceeds despite your valid claim, your remedies may include:

Requesting a written explanation and providing additional proof requested by the treasurer.
Filing a petition in Michigan circuit court to adjudicate competing claims and compel distribution of the funds.
Working with a Michigan probate attorney if the dispute concerns heirs, estate distribution, or competing creditor claims.

Helpful Hints

Contact the county treasurer first. They control sale records and hold surplus funds. Ask exactly what documents they require and whether they have a claim form.
Gather original or certified documents: death certificates, letters of authority, recorded deeds, mortgage or lien records, and ID for every claimant.
If the owner is deceased and there is no probate file yet, consult a probate attorney about a small estate affidavit or opening a short probate, especially if multiple heirs exist.
Keep copies of everything you submit and get proof of delivery or in-person receipts from the county office.
If you represent the owner under a power of attorney, make sure the POA is durable and valid under Michigan law and bring the original or certified copy.
If the county’s procedures are unclear or the claim is contested, hire a Michigan attorney experienced in tax-foreclosure or probate matters to file appropriate court papers.
Search the public record (county register of deeds and treasurer’s sale dockets) to confirm sale amounts and whether a surplus exists before investing time in a claim.

Where to get help

Start with the county treasurer’s office in the county where the property was located. For legal disputes, talk to a Michigan attorney who handles tax foreclosure, real property, or probate matters. You can find local bar referral services through the State Bar of Michigan to locate counsel.

Key statutory reference for Michigan foreclosure sale procedures: MCL 211.78k and related sections (General Property Tax Act, Chapter 211).

Again, this information is educational only and not legal advice. Contact a Michigan attorney or the county treasurer for help specific to your situation.