Quick answer: A valid right-of-survivorship (for example, joint tenancy with right of survivorship) can change who legally owns the property at the time surplus funds are distributed. If you can prove you owned the property as the surviving co-owner before the court ordered distribution, you may be entitled to a larger share (or all) of the surplus. Success depends on the exact deed language, the timing of death(s), recorded documents, and any competing claims or liens. This summary explains the key concepts, what evidence to gather, the usual court steps, and practical tips under Minnesota law.

Disclaimer: This article provides general information only and is not legal advice. For an opinion tailored to your facts, consult a Minnesota attorney.

1. Basic legal ideas you need to know

• Deed language controls ownership type. A deed that creates a joint tenancy (or other survivorship form) typically passes title automatically to the surviving co-owner when one owner dies.
• Surplus proceeds are the funds left after a foreclosure sale pays liens and costs. Minnesota’s foreclosure statutes govern how surplus funds are handled; see Minnesota Statutes, Chapter 580 (Foreclosure). https://www.revisor.mn.gov/statutes/cite/580
• Courts look at ownership status at the time the distribution is made (and often at the time of sale). If survivorship had already operated and title vested in the survivor before distribution, that survivor is usually treated as the owner entitled to the surplus.
• Competing claims can arise from heirs, creditors, or other recorded interests. Lien priorities, recorded instruments, and timing matter.

2. Typical situations and how the law treats them

Scenario A — Clear joint tenancy with survivorship

If the recorded deed unambiguously creates a joint tenancy with right of survivorship, and one co-owner dies before the surplus distribution, the surviving co-owner usually holds full title. The survivor would generally be entitled to receive the surplus funds.

Scenario B — Tenants in common or ambiguous deed

If the deed creates tenants in common or uses ambiguous language, ownership does not automatically pass to the survivor. In that case, each owner’s fractional interest at the time of sale governs how surplus funds are divided.

Scenario C — Death and foreclosure timing overlap

If a co-owner dies very near the time of foreclosure sale, courts will examine whether survivorship vested before the sale or before the distribution. Documentation and exact timing become critical.

3. Evidence courts and trustees expect to see

To assert a survivorship claim you will typically need:

• A certified copy of the recorded deed that created the survivorship interest.
• Certified death certificate(s) for the decedent(s) showing dates of death.
• Recording history (chain of title) from the county recorder to show no contrary transfers occurred.
• Court filings in the foreclosure case showing the timing of sale and distribution.
• Affidavits or declarations from witnesses if ownership facts are contested.

4. How to assert your claim in Minnesota

1. Confirm the foreclosure case and where surplus funds are being held. Surplus funds are normally reflected in the foreclosure court file. See Minnesota Statutes, Chapter 580. https://www.revisor.mn.gov/statutes/cite/580
2. Collect and certify the deed and death certificate(s). Obtain an official certified copy from the county recorder and the state vital records office.
3. File a written claim or motion in the foreclosure case asking the court to recognize your survivorship interest and to direct distribution of the surplus to you. Procedures vary by county; the court will direct what filings and timelines apply.
4. If another party contests the claim, you may have to present evidence at a hearing or trial. The judge will decide based on recorded documents, statutes, and equitable considerations.
5. If the court awards surplus funds to you, the court will issue an order directing the disbursement and the clerk or trustee will pay you according to that order.

5. Common problems and defenses you should know about

• Late claims: If you wait too long, the court may have closed the distribution or paid funds to other claimants. Act promptly once you learn about the foreclosure sale and surplus.
• Record vs. equitable interest: Even if you argue equitable survivorship, the court gives weight to the recorded deed and statute-backed rights.
• Creditor liens and probate claims: Creditors of the decedent or probate proceedings may create competing claims to surplus proceeds.
• Fraudulent or forged instruments: If the deed is forged or altered, the dispute becomes more complex and may involve separate litigation or criminal investigation.

6. Practical next steps

• Get certified copies of the deed and death certificate immediately.
• Check the foreclosure court file (county district court where the property is located) to find whether surplus funds exist and who holds them.
• Contact the county recorder to pull the chain of title and to confirm whether any later instruments (deeds, affidavits, releases) affect the survivorship claim.
• Speak with a Minnesota real estate or probate attorney early. They can prepare the proper court filing and represent you at any hearing.

Helpful hints

• Keep originals and certified copies of all documents; courts prefer certified records over photocopies.
• Note the exact dates: when the deed was recorded, when co-owners died, and when the foreclosure sale and distribution occurred.
• If you are not the named owner on the recorded deed but believe you have an equitable claim, consult an attorney about whether you should file a claim anyway; equitable claims are harder to win and often require stronger proof.
• Contact the clerk of the district court handling the foreclosure to learn the local procedure for claiming surplus funds.
• Act quickly—delays can result in lost rights or procedural bars.