Detailed Answer
If a county tax foreclosure sale produced money in excess of what was needed to satisfy the delinquent taxes, penalties, costs and any superior liens, those extra funds are called surplus (sometimes “excess proceeds”). In Missouri, the process to recover surplus funds after a tax foreclosure sale is handled locally through the county collector, the circuit court that ordered the sale, and, if the property owner is deceased, through the probate process. This answer explains the typical path to claiming that money, who can claim it, what documents you will need, where to start in Missouri, and what statutes and offices to check.
1. Confirm whether surplus funds exist and where they are held
- Contact the county collector (sometimes called county treasurer) and the circuit court clerk in the county where the property was taxed. Ask for the tax sale accounting, the certificate of sale, the order of distribution, and the official record showing whether any surplus was generated.
- Counties often prepare a surplus distribution sheet after the sale; the clerk/collector will tell you if money remains and whether the county is holding it or whether the court retained jurisdiction to distribute it.
- Missouri law governing delinquent tax procedures is in RSMo Chapter 140. You can review that chapter for background on tax sales and distribution procedures: https://revisor.mo.gov/main/OneChapter.aspx?chapter=140
2. Who is entitled to claim the surplus?
Priority for surplus funds typically follows legal ownership and recorded lien priority at the time of the tax lien sale:
- The owner of record at the time of the tax sale (or the owner of record who had an interest that survived the sale) is generally first in line to claim surplus funds.
- Lienholders or mortgagees with recorded interests that prime or survive the tax lien may also have claims.
- If the owner is deceased, the owner’s estate (through a personal representative or executor) or beneficiaries/heirs may need to make the claim. Missouri probate rules will control who can lawfully receive estate assets.
3. Typical steps to claim surplus funds
- Gather documents. Typical documents include: proof of identity; deed or title showing prior ownership; the tax sale certificate or sale information; a death certificate (if the owner is deceased); a will and letters testamentary or letters of administration (if there is a probate); and any lien or mortgage documents if you are claiming as a creditor.
- Contact county officials. Ask the county collector and circuit clerk whether their office has a formal surplus-claim form or whether you must file a petition in the circuit court that supervised the tax sale.
- If the county will not disburse administratively, file a court petition. In many counties the claimant files a petition (often called an application for distribution of surplus proceeds or a motion for distribution) in the circuit court that entered the order for sale. The court will require evidence of your right to the funds and may require notice to other known claimants.
- If owner is deceased, handle probate requirements first (if necessary). If the surplus is an asset of the decedent’s estate, a personal representative may need to be appointed through probate before the court will release the money to heirs or beneficiaries.
- Attend any hearings and respond to competing claims. If other parties claim the funds (for example, a mortgage holder or a different heir), the court will resolve competing claims based on recorded priority, equitable considerations, and probate status.
4. Common procedural issues and considerations
- Time sensitivity: Act quickly. County offices sometimes transfer unclaimed funds to the State Treasurer under Missouri’s unclaimed property process if not claimed within a particular administrative period. The State’s unclaimed property program may become involved if funds are later escheated. You can search the State Treasurer’s unclaimed property database and contact the State Treasurer’s office for guidance.
- Proof of ownership and authority: If the owner is deceased, you will most often need letters testamentary/administration or a court order authorizing distribution to heirs. If you claim as an heir outside of probate, the county/court may require the probate administration to be opened.
- Competing creditors: Mortgagees or lienholders who recorded liens before the tax lien or who successfully litigate a superior claim may share or take priority to the surplus.
- Fees and taxes: Courts may require costs, and attorneys’ fees are possible. Distribution may also have tax consequences—consult a tax advisor if necessary.
5. Where to find help and official resources
- County collector/treasurer and circuit court clerk in the county where the property was located — they hold sale and distribution records.
- Missouri Revised Statutes, Chapter 140 (delinquent taxes and tax sales): https://revisor.mo.gov/main/OneChapter.aspx?chapter=140
- Missouri Division of Finance or State Treasurer’s unclaimed property pages (if surplus becomes unclaimed property).
Because county procedures vary and the facts (survival of mortgages, death of the owner, how the sale was conducted) change the result, many claimants use an attorney—especially when the owner is deceased or there are competing claims. An attorney can prepare a petition, represent you at hearings, and ensure the documentation meets the court’s standards.
Disclaimer: This is general information about Missouri procedures, not legal advice. It does not create an attorney-client relationship. For advice about a particular situation, consult a licensed Missouri attorney.
Helpful Hints
- Start at the county: call the county collector and the circuit court clerk first — they will often tell you whether a surplus exists and what their claim process requires.
- If the owner is deceased, get a certified copy of the death certificate and determine whether probate has been opened; if not, opening probate may be necessary before funds are released.
- Collect proof of prior ownership: deeds, tax records, and identification help establish your right to claim the money.
- Watch out for “surplus recovery” companies that demand large upfront fees or require you to sign away rights. Consider hiring a Missouri attorney instead of signing with an unknown third party.
- Be prepared to show lien priority documents if you are a mortgagee or creditor claiming part of the surplus.
- If county officials say the funds were turned over to the state unclaimed property office, search the State Treasurer’s database and contact their office for the claim instructions.
- Act promptly — delays can complicate claims and increase the chance that the money becomes harder to recover.