Detailed Answer
After a foreclosure sale in South Dakota, any amount left after paying all liens, costs and fees is called surplus funds. An interested party—often the former owner or a junior lienholder—can follow these steps to determine whether surplus funds remain:
- Identify the Case and Sale Details
Obtain the foreclosure case number and the judicial circuit name. You can find this information on the public docket at the county courthouse or via the clerk of courts’ online portal. - Review the Sheriff’s Report of Sale
Within a few days after the auction, the county sheriff must file a Report of Sale with the clerk of courts. This report lists the sale price and summarizes the distribution of funds. - Check the Clerk’s Distribution List
Under SDCL 21-53-21, any surplus proceeds must be deposited with the clerk of courts for distribution. The clerk maintains a Distribution List or ledger entry showing payments to the foreclosing creditor, junior lienholders, and any remaining surplus. You can request a copy of this record in person or online:
SDCL 21-53-21 - Confirm the Amount and Claim Status
If the Distribution List shows a positive surplus, note the amount and the deadline to claim it. Under SDCL 21-53-27, the former owner or any junior lienholder has one year from the sale date to file a claim for the surplus. After that period, unclaimed funds may escheat to the county general fund. - File a Claim for Surplus Funds
To recover the surplus, file a verified petition with the clerk of courts in the county where the sale occurred. Include:- Case number and sale date
- Proof of your interest (e.g., title records, lien documents)
- A statement of the claimed amount
Serve notice on all parties listed in the Distribution List.
If the clerk approves your petition, the court will enter an order directing disbursement.
Helpful Hints
- Always verify sale details directly with the county clerk or sheriff to avoid outdated information.
- Many counties post sheriff sale results and distribution data online—check your local county website.
- Note the one-year deadline under SDCL 21-53-27 to assert a claim for surplus proceeds.
- Keep records of all filings and certified mail receipts when serving notice.
- If you miss the deadline, consider consulting an attorney about possible exceptions or equitable relief.