Detailed Answer
Under Montana law, a foreclosure sale may produce surplus funds if the sale price exceeds the total debt, accrued interest, fees, and expenses. Mont. Code Ann. § 71-1-311 requires the foreclosing trustee or sheriff to apply the sale proceeds in order: costs, fees, mortgage balance, then any remaining surplus. Surplus funds belong to parties with a valid claim against the property and must be claimed within the court time frame.
Follow these steps:
- Determine the county of sale. Locate the county where the foreclosure occurred by checking the property records. The county of record holds the sale documents.
- Review sale and distribution records. Visit the county clerk of district court or sheriff’s office. Request the foreclosure sale docket or distribution record. These documents list the sale price and how the proceeds were disbursed. Many counties also publish these records online.
- Check the district court’s surplus fund docket. If surplus funds exist, the foreclosing party must deposit them with the clerk of district court for that county. Request access to the “surplus fund” docket. The clerk can confirm whether a deposit occurred and provide instructions to file a claim.
- Search unclaimed property records. If no claimant steps forward, the clerk forwards the surplus funds to the Montana State Treasurer Unclaimed Property Division. Search its online database to see if the funds await a claimant.
- File a claim. To recover surplus funds, file a verified petition with the district court clerk. Include your contact details, proof of your legal interest in the property (e.g., deed, lien, judgment), and a copy of the foreclosure distribution record. The clerk will guide you through the requirements under Mont. Code Ann. § 71-1-311.
Helpful Hints
- Consider hiring a title company or attorney to confirm the foreclosure details and your claim priority.
- Act quickly: Montana law limits the period to claim surplus funds after a sale.
- Keep copies of all notices, court filings, and correspondence with the clerk’s office or treasurer’s office.
- If you miss the court deadline, you might still locate the funds through the state’s unclaimed property database.