How to File a Petition for Surplus Funds After a Missouri Foreclosure Sale
Disclaimer: This article is for informational purposes only and is not legal advice. Consult a qualified Missouri attorney to address your specific situation.
Detailed Answer
After a foreclosure sale in Missouri, any money remaining once the mortgage debt, costs and liens are satisfied is called the surplus. Missouri law authorizes the party entitled to those surplus funds to petition the court for payment. The key statute is RSMo § 443.505.
1. Determine Eligibility and Amount
Review the foreclosure sale record and the order of distribution, typically available through the county circuit clerk’s office. The clerk’s distribution sheet shows the sale price, amounts paid to the lender, junior lienholders and court costs, and any remaining surplus.
2. Prepare the Petition
File your petition in the same circuit court that ordered the foreclosure sale. Your petition should include:
- The court name, case number and title of the foreclosure action.
- Your name and address, identifying your interest (for example, former owner or junior lienholder).
- A statement of the sale date, sale price and calculation showing the surplus amount.
- A request for an order directing the clerk to pay the surplus to you.
This format follows the requirements of RSMo § 443.505.
3. Serve Notice on Interested Parties
Missouri practice requires notice to all parties with an interest in the surplus funds, such as junior lienholders. Although the statute does not specify exact deadlines, best practice is to serve within 30 days of filing the petition. Use certified mail or personal service according to RSMo § 506.150 (service of process).
4. File Proof of Service and Proposed Order
After serving each party, file affidavits or certificates of service with the court. Also submit a proposed order directing the circuit clerk to release the surplus funds to you.
5. Attend Hearing (if required)
Some judges may schedule a short hearing to confirm there are no competing claims. Be prepared to explain your entitlement and provide copies of the foreclosure distribution sheet.
6. Obtain the Court Order and Collect Funds
Once the court signs the order, deliver it to the circuit clerk’s office. The clerk will issue a check or direct deposit for the surplus amount to you. The distribution procedures are outlined in RSMo § 443.525.
Helpful Hints
- Double-check the foreclosure docket for all liens and costs before calculating the surplus.
- Keep detailed records of service on each interested party to avoid delays.
- Confirm local circuit court rules, as some counties require electronic filing or specific cover sheets.
- Consider hiring a process server for reliable service of notice.
- Act promptly: although Missouri law does not spell out a strict deadline, waiting too long may raise questions about stale claims.