FAQ: How do I claim surplus funds after a foreclosure of my deceased parent’s property when their estate was never probated?

Short answer: In South Carolina, surplus funds from a foreclosure sale are controlled by the court that conducted the sale (usually the circuit court through a master-in-equity). To claim those funds on behalf of a deceased parent when the estate has not been probated, you will generally need to locate the surplus, prove your right to the money (death certificate, proof of heirship, or letters of administration), and file a claim with the master-in-equity or the court clerk in the county where the sale occurred. If the estate was never opened, you may first need to open probate or obtain a court order recognizing your right to collect the surplus. Consult the circuit court (master-in-equity) in the county where the property was sold and consider getting probate help.

Detailed answer — step-by-step under South Carolina law

1. Understand what “surplus funds” are

When a foreclosure sale produces more money than required to pay the foreclosing lien (and any valid junior liens and sale costs), the extra amount is called surplus or excess proceeds. South Carolina foreclosures are typically handled through the circuit court process and the court’s master-in-equity (or by the trustee who conducted the sale under a power granted by the court). The court controls distribution of any surplus.

2. Identify whether surplus exists and where it is held

Contact the foreclosing attorney or trustee who handled the sale. They can tell you if there were surplus proceeds and where the funds are being held.
Check the circuit court (master-in-equity) docket and sale paperwork in the county where the property was located — the clerk or master’s office can confirm whether the court ordered distribution and whether any funds remain.

3. Gather documents to prove your parent’s death and your relationship

Common documents the court or trustee will want:

Certified copy of the decedent’s death certificate.
Document showing your parent owned the property or had an interest (deed, mortgage, foreclosure sale record).
Proof you are an heir or personal representative: an affidavit of heirship, a will (if any), or letters of administration/letters testamentary if probate was opened.
Photo ID for the claimant(s).

4. If the estate was never probated, determine whether you must open probate

Because probate establishes legal authority to act for the decedent’s estate, many courts require either:

That someone be appointed personal representative (by opening a probate) before receiving funds; or
That claimants present a signed affidavit of heirship and other evidence that the claimants are the rightful heirs and no administrator is required for the amount at issue (some courts permit limited relief without full probate for small, uncomplicated claims).

Which path applies depends on the county, the size of the surplus, whether there are competing claims (creditors, junior lienholders), and local master-in-equity practice. In many South Carolina counties, the master-in-equity will require either letters of administration or an agreed order from the probate court recognizing who may claim proceeds.

5. File the proper paperwork with the court or master-in-equity

Typical filings include a petition or motion to the master-in-equity or a claim for surplus proceeds. The filing should attach proof of the decedent’s death and proof of your claim as heir or representative. The master or court will often give notice to interested parties (other heirs, lienholders) and resolve competing claims before releasing funds.

6. Resolve competing claims and liens

Surplus is paid after valid liens and allowable costs. If there are outstanding junior mortgages, tax liens, or other claims, those must be resolved or paid out of the surplus. The master-in-equity will decide priorities and distribution.

7. If the funds remain unclaimed

If no one claims surplus funds for a long time, state unclaimed property rules may apply and the funds might be turned over to the South Carolina unclaimed property office. To avoid losing access, investigate and claim as soon as you can. You can also search the state unclaimed property database for the decedent’s name.

Where to go for county-level help

Contact the circuit court clerk’s office and the master-in-equity’s clerk in the county where the property was located. The master-in-equity usually handles foreclosure sales and surplus distribution in South Carolina.
Contact the foreclosing attorney or trustee named in the foreclosure paperwork — they often hold or know about surplus funds and can tell you what proof they need.
Search for unclaimed property on the South Carolina Treasurer’s website if you can’t locate the funds through the court or trustee.

Key South Carolina resources

South Carolina Code of Laws (general reference for probate and property law): https://www.scstatehouse.gov/code.php
South Carolina Judicial Branch (circuit courts and master-in-equity information): https://www.sccourts.org/
South Carolina Treasurer — Unclaimed Property search and instructions: https://treasurer.sc.gov/

When to consider hiring a lawyer

While some heirs can collect small surplus amounts using affidavits or by agreeing among themselves, hire a lawyer if:

Multiple heirs contest distribution or there are unknown heirs.
There are competing lien claims (taxes, junior mortgages) or creditor claims against the estate.
The amount of surplus is substantial and the distribution requires a formal probate or complex court proceedings.

Helpful Hints

Act quickly — the earlier you locate and claim surplus funds, the easier the process and the lower the risk the funds will be transferred to the state as unclaimed property.
Start with the foreclosure paperwork — sale notices, the foreclosure judgment, and the sale minutes typically name the trustee, attorney, and court handling the sale.
Obtain certified copies of the death certificate and the decedent’s property deed before contacting the court or trustee.
If you cannot open a full probate, ask the master-in-equity whether an affidavit of heirship or a limited petition will suffice for the surplus amount at issue in that county.
Keep organized records: receipts, filings, correspondence with the trustee and the court, and copies of any petitions you file.
Search the state’s unclaimed property database if the court or trustee cannot locate funds — sometimes banks or trustees remit small unclaimed surpluses to the state.
If you expect other creditors or liens against the estate, prepare to show how those claims were or should be paid from any surplus.

Disclaimer: This article explains general procedures under South Carolina law but is not legal advice. It does not create an attorney-client relationship. For decisions that affect legal rights or when facing disputes, consult a licensed South Carolina attorney or the local probate and circuit court offices for guidance tailored to your situation.