How to File a Motion to Claim Surplus Proceeds After a Foreclosure in Nevada

Quick explanation — what “surplus proceeds” are

When a property is sold at a foreclosure sale, the sale proceeds first pay the trustee or lender, tax liens, junior lienholders, and sale costs. Any remaining money is called the surplus (or excess) proceeds. People who may have a legal claim to that surplus include the former owner (or the former owner’s estate and heirs), junior lienholders, and other parties with recorded interests in the property.

Overview of Nevada law that commonly applies

Nevada handles many foreclosures outside of court (trustee’s sales under deeds of trust), but courts decide disputes about surplus funds and competing claims. Useful Nevada law resources:

• NRS Chapter 107 — Deeds of Trust and Trustee Sales
• NRS Chapter 40 — Actions Affecting Real Property (general civil practice)
• NRS Chapter 116 — HOA foreclosures (if the foreclosure involved an HOA lien)
• Nevada Court Rules (procedures and service rules)
• Nevada Judiciary — court locations, clerk’s offices, and forms

Step-by-step: How to file a motion (petition) to determine your right to surplus funds in Nevada

1. Gather basic records and confirm a surplus exists.

   Start with the recorded trustee’s deed of sale or sheriff’s deed in the county recorder’s office where the property sits. That document, and the trustee’s or foreclosure agent’s accounting, will show the sale price, the amount paid to creditors, and whether a surplus remains. If the foreclosure was through an HOA sale, the accounting will reflect HOA sale proceeds.

2. Identify who can claim the surplus.

   Potential claimants include the former owner (or the former owner’s estate), heirs, a personal representative or executor, junior lienholders, or other parties with recorded interests. If the former owner is deceased, you will usually need authority to claim on behalf of the estate (see step 4).

3. Make an administrative demand first.

   Before going to court, send a written demand to the trustee or the foreclosure agent and to the purchaser (if known). Include proof of your relationship to the decedent (if applicable) and request an accounting and distribution. Keep copies of all correspondence and proof of delivery.

4. If the owner is deceased, secure authority to claim proceeds.

   If your mother has died, you may need one of the following to claim surplus funds in Nevada: (a) letters testamentary or letters of administration issued by the probate court naming you personal representative; or (b) follow the county’s procedure for a small estate or affidavit by heir (procedures and thresholds vary). Contact the probate clerk in the county where the decedent lived to learn what paperwork is required.

5. Prepare and file a petition (or motion) in District Court.

   If the trustee will not release the money after your demand, file a petition or complaint in the Nevada District Court in the county where the property was located asking the court to determine the persons entitled to the surplus and to order distribution. The filing is often titled something like “Petition to Determine Right to Surplus Proceeds from Trustee’s Sale.”

   Typical items to include with your filing:

   • Verified petition or complaint explaining the foreclosure, the sale, the asserted surplus amount, and your claim.
   • Copies of the trustee’s deed of sale, public trustee accounting, or sheriff’s deed and any foreclosure notices.
   • Proof of death (death certificate) and proof of authority to act for the estate (letters testamentary or small estate affidavit), if the owner is deceased.
   • Affidavits, title documents, and any communications with the trustee or purchaser.
   • A proposed order directing distribution of funds to you if the court finds in your favor.
6. Serve notice on all interested parties.

   Serve the petition and summons on all parties with a potential interest in the surplus — the trustee, mortgagee, purchaser, recorded lienholders, and any known heirs or creditors. Follow Nevada’s rules for service (see the Nevada Court Rules link above). Proper service gives the court jurisdiction to decide competing claims.

7. Attend the hearing and present evidence.

   The court will schedule a hearing. Be prepared to present evidence that shows the amount of surplus and your claim to it: title history, accounting, proof you are an heir or representative, and any communications with the trustee or purchaser. The court will evaluate competing claims and may decide distribution at a hearing or after briefing.

8. Collect funds under court order or follow the appeals process if necessary.

   If the court orders distribution in your favor, the clerk or a designated party will release the funds as ordered. If another party disputes the order, they may appeal — talk with an attorney about prompt collection options and guarding against delays.

Timing and practical concerns

• Act quickly. The longer you wait, the greater the chance competing claimants will appear or that funds will be dissipated.
• Be ready for creditor offsets. Courts can reduce surplus distributions to satisfy outstanding liens against the former owner or the estate.
• Filing and service fees apply, and attorneys’ fees may be recoverable in limited circumstances.

Where to find forms and local procedures

District court clerks can tell you local filing procedures and may provide civil cover sheets and general forms. See the Nevada Judiciary site for court locations and contact information: https://nvcourts.gov/.

Helpful Hints

• Request a full accounting from the foreclosure trustee in writing. That accounting is proof of whether a surplus exists.
• If the former owner is deceased, open a probate or get letters of administration if the estate is already in probate. Without estate authority, a court may reject your claim.
• Check for junior lienholders: filing a petition without notifying them can lead to delays or a requirement to redo service.
• Take clear, organized copies of title documents, the trustee’s deed, and any death or probate paperwork to your initial court appearance.
• Consider limited-scope representation. If you cannot afford a full attorney, ask whether an attorney will handle only the court hearing or drafting the petition.
• If the foreclosure was an HOA sale, review NRS Chapter 116 rules for special procedures and timelines: NRS 116.
• Use certified mail or other verifiable delivery methods when sending demands or documents to the trustee or purchaser.
• Keep a timeline of every step (dates of sale, recording, demands sent, replies, filings). Judges find timelines helpful when deciding conflicting claims.