How to Claim Surplus Funds After a Tax Foreclosure Sale in New Hampshire

What are surplus funds? When a municipality sells real property to collect unpaid property taxes, sale proceeds first pay the taxes, interest, penalties, fees and the costs of the sale. Any money left over after those items are paid is called the surplus (or overage). In New Hampshire, surplus funds belong to prior owners and other parties with an enforceable interest in the property (for example, mortgage holders, judgment lienholders, or heirs), subject to statutory procedure.

Who can claim the surplus? Typical claimants include the former record owner, heirs or personal representatives if the owner is deceased, holders of prior recorded liens (mortgages, mechanics’ liens, judgment liens) whose security was not extinguished by the sale, and assignees of the owner’s or lienholder’s claim. Priority among claimants depends on the chain of title and any liens recorded before the tax lien. If the owner died, beneficiaries or the estate’s representative will usually need probate documents to make a claim.

How to confirm whether there is a surplus and how much it is

1. Contact the municipal tax collector, treasurer, or town/city clerk where the property is located. Municipal officials keep records of tax sales, the amounts bid, and any surplus generated.
2. Check the county registry of deeds for the sale paperwork and for any notices of sale. Public sale notices (newspaper or municipal posting) also indicate sale results.
3. Request an accounting or statement of sale from the municipality showing the sale price, taxes and costs paid, and the resulting surplus, if any.

Typical steps to claim surplus funds in New Hampshire

1. Assemble proof of your right to the money. Common documents include a recorded deed showing prior ownership (or a certified copy), mortgage or lien records, certified death certificate and letters testamentary or administration if the owner died, power of attorney (if applicable), photo ID, and any written assignment or release documents.
2. Ask the municipality for its claim procedure. Many New Hampshire towns and cities have an administrative form or local practice for releasing surplus funds to the rightful claimant after submission of documents and identity verification. Start by contacting the tax collector or town clerk and ask what forms and proof they require.
3. If the municipality will not release the funds administratively, file a court claim. If the town holds the surplus but refuses to pay, or if multiple parties claim the same money, you will likely need to petition the Superior Court in the county where the property is located. The court can determine who has the right to receive the surplus and order payment. Expect to submit a verified petition, supporting documents, and to serve notice on interested parties. The local Superior Court clerk and the New Hampshire Judicial Branch website (https://www.courts.state.nh.us/) provide filing guidance.
4. Attend any hearings and follow court orders. The court may hold a hearing to decide competing claims. If the court grants your claim, it will order the municipality to distribute the surplus to you (or direct the county registry), and you will then receive the funds according to the court order.

Deadlines and statutes

New Hampshire law governs tax liens, tax sales, and the distribution of sale proceeds. To review the statutory framework, look up state statutes on tax foreclosure and sales. The New Hampshire Revised Statutes Annotated are available online (search for chapters on tax liens and foreclosure at the RSA index: https://www.gencourt.state.nh.us/rsa/html/). Because statutory deadlines and procedural requirements can affect your right to claim surplus funds, check the applicable RSA provisions and consult the municipal office or an attorney promptly.

Evidence and documentation you will likely need

• Photo identification for claimant(s)
• Deed or recorded instrument showing ownership or lien (certified copies from the registry of deeds)
• Probate documents (letters testamentary/administration) and a death certificate if the prior owner is deceased
• Recorded mortgage, judgment, or lien documents if you are a secured creditor
• A sworn affidavit explaining your claim if title records are unclear
• Any assignment or power of attorney if you act for another person

Cost and time expectations

Administrative releases from the municipality can take a few weeks once documents are in order. If you must file in court, the process can take months: filing fees, service costs, possible attorney fees, and the court calendar will affect timing and expense. If multiple claimants dispute distribution, expect litigation costs to rise.

Special situations — owner deceased or multiple claimants

• If the owner is deceased: the estate’s personal representative (executor or administrator) should claim the surplus on behalf of the estate. The town will typically require probate letters and a death certificate.
• If a mortgage or other lien exists: lienholders should present recorded lien documentation. In many cases, lienholders’ claims have priority over unsecured claims.
• If there are competing heirs or assignees: the court will sort priorities and equity; you may need to litigate to establish your entitlement.

Hypothetical example

Suppose the municipal tax sale produced proceeds of $150,000. The town applied $120,000 to unpaid taxes, interest, penalties and sale costs. That leaves a $30,000 surplus. If you are the former owner or the owner’s executor, gather proof of ownership (deed), any probate papers, and photo ID, and present them to the tax collector. If the town requires a court order or refuses to pay, you file a petition in Superior Court asking the court to order distribution of the $30,000 to you. If a mortgage holder also claims the $30,000, the court will review recorded liens and probate documents and decide who gets all or part of the surplus.

Where to look for legal text and local help

• New Hampshire Revised Statutes: https://www.gencourt.state.nh.us/rsa/html/ (search for chapters addressing tax liens and foreclosure)
• New Hampshire Department of Revenue: https://www.revenue.nh.gov/municipalities/ — municipal tax contacts and guidance
• New Hampshire Judicial Branch (court procedures and contact info): https://www.courts.state.nh.us/

When to talk to an attorney

Consider hiring an attorney if:

• The municipality refuses to turn over surplus funds without a court order.
• Multiple parties claim the same money or title is disputed.
• There are complicated estate or lien issues (probate, mortgage priority disputes, assignments).
• You want help drafting and filing a Superior Court petition and handling service and hearings.

An attorney experienced in property, municipal tax, or probate matters can help locate the funds, assemble the proof, and present the best path to recover the surplus.

Note: This is educational information only and not legal advice. Laws change; consult the New Hampshire statutes linked above or talk with a licensed New Hampshire attorney about your specific facts.

Helpful Hints

• Contact the town or city tax collector first — many surpluses are paid administratively if you provide the right documents.
• Get certified copies of deeds and lien instruments from the county registry of deeds early; those records prove your interest.
• If the owner died, get probate letters quickly. Municipal offices usually require them before releasing funds to an estate representative.
• Keep careful records of phone calls, mailings, and documents you submit to the municipality — those can help later if there is a dispute.
• Act promptly. Even when no firm deadline appears in municipal paperwork, delays can complicate evidence and party availability.
• If you’re unsure who has priority, a short consultation with a New Hampshire attorney can save time and expense later.