Detailed answer: What you likely must do to pursue surplus funds

If a home owned by your mother sold at a foreclosure sale and the sale produced money in excess of the amounts owed (a “surplus”), those surplus funds are not automatically paid to heirs. In Mississippi you will usually need to file a claim or a motion in the court that handled the foreclosure (often the chancery court or the clerk that conducted the sale) to ask the court to determine who is entitled to the surplus and to order distribution.

Step 1 — Confirm whether there is surplus and where it is held

• Contact the clerk or official who conducted the foreclosure sale (often the chancery clerk or county sheriff depending on the sale) and ask whether surplus proceeds exist and where those funds are held.
• Obtain copies of the foreclosure sale return, sale ledger, and the report of distribution. Those documents show the sale price, how the sale proceeds were applied, and whether a surplus was recorded.

Step 2 — Identify who has the legal right to claim the surplus

• If the deceased owner left a will and the estate has been probated, the executor (personal representative) is the person who must claim estate assets, including surplus proceeds.
• If the estate was not probated, an heir (next of kin) may have a claim, but many courts will require appointment of an administrator or some form of probate authority before releasing estate assets.
• Power of attorney documents are ineffective after the principal’s death; a POA holder cannot claim funds on behalf of a deceased person unless they are also the appointed personal representative or have other court authority.

Step 3 — Gather the documents you will need to support a claim

• Certified death certificate for your mother.
• If available, the will and letters testamentary (executor’s letters) or letters of administration appointing an administrator for the estate. If no probate exists, be prepared to open a small estate or full probate.
• Foreclosure sale documents: notice of sale, sale return, report of distribution, deed of sale, etc.
• Title records or deed showing your mother’s ownership interest.
• Documentation of other liens or claims (junior mortgages, tax liens) — the clerk’s distribution report will usually list those.
• Valid ID for the person filing the claim and any proof of relationship to the decedent (birth certificate, family records) where needed.

Step 4 — File the appropriate document in the correct court or with the holding official

You will usually file a written petition or motion titled something like “Petition (or Motion) to Determine Right to Surplus Proceeds” in the court that supervised the foreclosure sale (commonly chancery court in Mississippi counties). The petition should:

1. Identify the foreclosure case and the sale (case number, sale date, parcel description).
2. State that surplus proceeds exist and identify the current holder of the funds (e.g., chancery clerk).
3. Explain your legal interest in the surplus (executor, administrator, heir) and attach supporting documents (letters, death certificate, will).
4. List all other known claimants (mortgagees, junior lienholders) and request that they be notified.
5. Ask the court to determine the rightful recipient and order disbursement of the funds.

Step 5 — Serve notice on interested parties

Mississippi courts require that any known lienholders, mortgagees, the purchaser at the sale, and other interested parties receive notice of your petition and an opportunity to object. Follow the court’s service requirements (personal service, certified mail, or publication where appropriate).

Step 6 — Attend the hearing and obtain a court order

If the court sets a hearing, present your documentation and explain why the surplus should be paid to you (as executor, administrator, or heir). If no one contests, the court can enter an order directing the clerk to distribute the funds. If there are competing claims, the court will resolve them based on priorities, probate status, and supporting evidence.

Step 7 — Collect the funds after entry of the order

Once you have a certified court order directing distribution, present it to the office holding the funds (e.g., chancery clerk). The clerk will follow the order and typically issue a check to the person or estate the court names.

Common priority issues you should know

• Secured creditors with valid liens that were junior to the foreclosed lien often have priority to surplus funds. The court will first pay lienholders and costs, with the remaining surplus payable to the owner or the owner’s estate.
• Taxes, judgment liens, and certain statutory liens may attach and reduce any surplus available to heirs.
• If the estate is open, the surplus becomes estate property to be distributed under the will or intestacy laws after payment of estate debts.

If the property was owned solely by your mother and she is deceased

You will most often need to show authority to act for the estate (executor or administrator). If no probate exists, you may need to open a probate (or a small estate proceeding where eligible) to obtain letters allowing you to collect the surplus on behalf of the estate.

Timing — act quickly

Deadlines and local practices vary. Do not assume surplus funds will remain available indefinitely. Begin the process as soon as you learn of a surplus, because delays can make claims harder and can allow other claimants to assert priority.

Resources: the Mississippi Judiciary website (https://courts.ms.gov/) provides contact information for chancery clerks and local court rules. For general state statutes and to look up statutes that govern foreclosure, probate, and distribution, see the Mississippi Legislature site at https://www.legislature.ms.gov/.

Helpful hints

• Start at the county chancery clerk’s office — clerks can tell you whether a surplus exists and where it is held.
• If your mother’s estate is not probated, plan to open probate or seek appointment as administrator; courts often require formal authority before releasing estate assets.
• Gather documentation before filing: death certificate, deed, foreclosure sale documents, and any estate paperwork.
• Serve every known lienholder and the foreclosure purchaser — failing to notify a party can delay or undo a distribution.
• Understand lien priority: junior lienholders or judgment creditors may be entitled to some or all of the surplus.
• Do not rely on a power of attorney after death. After death, only a personal representative appointed by the court or a properly authorized person can claim estate funds.
• If other claimants object, be prepared for a contested hearing; consider hiring a lawyer if the amount at stake is significant or the chain of title is complex.
• Ask the clerk whether your county has a standard local form or template for a petition to claim surplus proceeds — many clerks provide guidance on filing procedure and fees.
• Keep copies of everything: filed motions, proof of service, certified court orders, and correspondence with the clerk.

Getting an attorney experienced with Mississippi foreclosure and probate practice can save time and reduce procedural mistakes. If you choose to proceed without counsel, follow local court rules closely and confirm filing and service procedures with the clerk.