Disclaimer
This article is for educational purposes and does not constitute legal advice. Consult an attorney for guidance specific to your situation.
Detailed Answer
Under Rhode Island law, when a property is sold at a sheriff’s foreclosure sale and the sale price exceeds the total debt and costs, the sheriff must hold the surplus funds for individuals with a lawful claim. You must file a petition within three months of the sale date to recover these surplus funds. (See R.I. Gen. Laws § 34-27-16.)
1. Confirm Entitlement and Deadline
Determine if you qualify as an owner, lienholder, or other party with a lawful interest. You have three months from the foreclosure sale date to file your claim. After this period, unclaimed funds may revert to the foreclosing mortgagee.
2. Gather Required Documentation
- Copy of the sheriff’s sale notice or certificate of sale
- Proof of your interest (deed, lien documents, title report)
- Record of debts satisfied at the sale (mortgage payoff statements)
- Identification and contact information
3. Identify the Correct Court
File your petition in the Rhode Island Superior Court for the county where the property was sold. Superior Court has jurisdiction over surplus-fund petitions in foreclosure actions.
4. Draft the Petition for Surplus Funds
Your petition should include:
- Caption with court name, case number, and title of the foreclosure action
- Statement of facts: sale date, sale price, debts satisfied, and calculation of surplus
- Your interest and basis for claiming the surplus
- Request for payment of the surplus funds
- Verification under oath
5. File the Petition and Pay Fees
Submit the petition to the court clerk and pay the applicable filing fee. Fees vary by county; contact the clerk’s office for current rates.
6. Serve Notice on Interested Parties
Serve a copy of the petition and a notice of hearing on all parties with recorded interests, including senior and junior lienholders and the foreclosing mortgagee. Follow Rhode Island Superior Court Rules for service methods and timing.
7. Attend the Hearing and Obtain a Court Order
The court will schedule a hearing. Present your evidence, and if the court finds your claim valid, it will issue an order directing the sheriff to release the surplus funds to you.
8. Collect Your Surplus Funds
Present the court order to the sheriff’s office. The sheriff will release the funds to you, typically by check. Some offices may require an appointment.
Helpful Hints
- File early: Missing the three-month deadline usually bars recovery.
- Keep detailed records: Include all pay-off statements and sale documents.
- Confirm service rules: Use certified mail or personal service as required.
- Track deadlines: Note court hearing dates and respond promptly.
- Consult an attorney: For complex title issues or multiple claimants.