Detailed Answer
Short answer: To claim surplus funds after your mother’s property was foreclosed in Michigan you must (1) confirm that surplus funds exist and who holds them, (2) establish your legal right to the funds (often as the decedent’s personal representative or an identified lienholder), and (3) file a motion or claim in the correct court or with the sheriff/county depending on how the sale occurred. You must support the motion with documentary proof, properly serve interested parties, and obtain a court order or administrative release before you can collect the money.
1. Figure out what kind of foreclosure and where the funds are held
Michigan uses two major foreclosure processes:
- Foreclosure by advertisement (a non‑judicial sheriff sale under MCL 600.3201 et seq.)
- Judicial foreclosure handled through the circuit court.
If the lender sold the property at a sheriff’s sale, the county sheriff or the court that handled the foreclosure is the place to start. See Michigan’s foreclosure statutes (foreclosure by advertisement begins at MCL 600.3201): https://www.legislature.mi.gov/mileg.aspx?page=getObject&objectName=mcl-600-3201.
2. Identify who can claim the surplus
Priority for surplus funds usually runs: costs of sale, secured creditors (junior lienholders), and then the former owner or the owner’s estate. If the owner is deceased, the owner’s right passes to the decedent’s estate — not to someone holding a power of attorney.
Common claimants:
- Personal representative (executor/administrator) of the decedent’s probate estate
- Heirs who have been appointed or who have transferred rights by probate or court order
- Junior lienholders who recorded liens before the foreclosure sale
3. Gather documents you will need
Typical supporting documents:
- Certified copy of the decedent’s death certificate
- Letters of authority / letters testamentary / letters of administration from probate showing you are the personal representative (if applicable)
- Recorded mortgage, judgment, or lien documents (if you claim as a lienholder)
- Certified copy of the sheriff’s deed or certificate of sale and any foreclosure paperwork
- Proof of identity for the claimant and relationship to the decedent
- A proposed order and a sworn affidavit or brief explaining why you are entitled to the funds
4. File the correct pleading in the right place
Which paperwork and where to file depends on the sale type:
- Foreclosure by advertisement (sheriff’s sale): you often start with the county sheriff or the county clerk to confirm the funds are being held. If the sheriff or the redeeming purchaser or a mortgagee currently holds the surplus, you will typically file a claim or a motion in the circuit court that has supervision over the sale, asking the court to determine distribution of surplus proceeds.
- Judicial foreclosure: file a motion or petition with the circuit court case that handled the foreclosure. Many foreclosure cases remain on the court docket; the judge can enter an order directing distribution of surplus funds.
The pleading is usually captioned as a petition or motion to determine right to surplus funds (or a “motion/petition for distribution of surplus proceeds”). The motion should:
- Identify the foreclosure case, sheriff sale date, and amount of the surplus.
- Explain your legal interest and priority (attach the letters of authority, death certificate, or lien documents).
- List all known parties with possible claims and provide their last known addresses for service.
- Request a hearing or ask the court to enter an order distributing the funds to the claimant.
5. Serve notice on interested parties
Michigan courts require that all interested parties receive notice. That usually includes the foreclosing mortgagee, junior lienholders, the purchaser at the sale (if any), the county treasurer if taxes are involved, and anyone else with a recorded interest. Follow Michigan Court Rules and local court procedures for service. If you fail to serve someone with a potential claim, the court may delay or deny distribution.
6. Attend the hearing and obtain a court order
The court will review the evidence and determine priority. If the court finds you entitled to the funds, it will sign an order directing the county treasurer, sheriff, or court clerk to release the money to the named payee. Keep certified copies of that order — banks and county offices will usually require it before releasing funds.
7. Collecting the funds and closing out the matter
Once the order directs release, the funds are typically distributed by check payable to the person or estate named in the order. If the court orders distribution to a personal representative, that representative will deposit the funds into the estate account and distribute them according to the will or Michigan intestate succession laws.
Key practical points and timing
- Act quickly. Unclaimed funds can be subject to state unclaimed property laws or may be distributed to others with superior claims. Do not rely on a power of attorney once the property owner has died; you will generally need authority from probate.
- If the estate has not been opened in probate, you may have to open a probate case to get letters of authority before the court will release funds to you.
- If other claimants object, you will likely need an attorney. Contested priority questions can become fact‑ and title‑intensive.
Michigan statute and court resources
Primary Michigan statutory authority for foreclosure by advertisement is located at MCL 600.3201 et seq. (see the starting section here): MCL 600.3201. The Michigan Courts website also provides local court rules and filing information: https://courts.michigan.gov.
When to consult an attorney: If multiple parties claim the surplus, if title records are unclear, if the estate is unresolved, or if you need help drafting pleadings and serving parties, consult a qualified Michigan attorney for help. An attorney can prepare the motion, check priority, and represent you at any hearing.
Disclaimer: This information is educational only and does not constitute legal advice. It does not create an attorney‑client relationship. For advice about your specific situation, consult a licensed Michigan attorney.
Helpful Hints
- Start by calling the county sheriff’s office and the county clerk to ask whether surplus funds exist and who currently holds them.
- If the owner died, open a probate case early so you can get letters of authority to claim funds for the estate.
- Collect certified copies of the death certificate and letters of authority — courts and county offices will usually insist on certified documents.
- Make a careful title/lien search before filing. Junior liens may have priority over the owner’s claim to surplus.
- Prepare a clean packet: motion/petition, affidavit, proposed order, and all supporting exhibits. That reduces delays at filing and at the hearing.
- Keep detailed proof of service on all interested parties; courts often deny relief if service is defective.
- If the case is contested or the amount is substantial, hire a Michigan attorney experienced in foreclosure and probate matters.
- Use the Michigan Legislature site for statute text and the Michigan Courts site for local filing rules and forms.