Detailed Answer
After a judicial foreclosure sale in Minnesota, the sheriff applies the sale proceeds to pay the mortgage debt and costs. If the sale brings in more than the total debt plus expenses, the surplus proceeds must go to the court administrator or county treasurer for distribution to anyone with a legal interest.
What Are Surplus Funds?
Surplus funds are the excess monies after a foreclosure sale covers the loan balance, interest, attorney fees, and sale costs. Minnesota law defines and governs surplus in Minn. Stat. §580.29.
Steps to Determine if Surplus Funds Remain
- Gather Foreclosure Sale Details. Obtain the case number, sale date, and property address. You can find this on the recorded Certificate of Sale at the county recorder’s office.
- Search Court Records. Use the Minnesota Judicial Branch eFiling system or visit the district courthouse. Look for the sheriff’s report, surplus receipt, or court order indicating surplus under Minn. Stat. §580.29.
- Contact the County Sheriff’s Office. Many counties publish foreclosure sale summaries online. Request information on sale proceeds and surplus balances.
- Check Unclaimed Funds Lists. Counties maintain unclaimed fund registries for abandoned surplus. Search using the owner’s name or property address on the county treasurer or auditor website.
- Review State Unclaimed Property. If surplus stays unclaimed for three years, Minnesota’s Department of Revenue may list it under unclaimed property. Search at mn.gov/comptroller/unclaimed-property.
How to Claim Surplus Funds
To claim surplus, file a motion with the district court where the foreclosure occurred. Attach proof of your interest (for example, a deed or lien assignment). Serve notice to all parties under Minnesota Rules of Civil Procedure. Once the court issues an order, provide it to the court administrator to release the funds.
Helpful Hints
- Keep the foreclosure case number and property address on hand.
- Search both county and state unclaimed funds databases.
- Review local court rules for motion deadlines and service requirements.
- Prepare supporting documents proving your legal interest in the surplus.
- Consider consulting an attorney if parties dispute your claim.