Detailed answer — what you must know and do

1. Identify who holds the surplus and where to file

After a judicial or non-judicial foreclosure sale, surplus funds are typically held temporarily by the clerk of the court that entered the foreclosure judgment, the master commissioner (in chancery court sales), or the sheriff/trustee who conducted the sale. You must file your claim in the same court that handled the foreclosure judgment and sale.

2. Confirm the amount, deadlines, and existing claims

• Contact the clerk of court, the master commissioner’s office (if a chancery sale), or the sheriff’s office to confirm whether surplus funds exist and how much. Ask whether any distribution or accounting has been filed.
• Ask the clerk whether anyone else has already filed a competing claim or whether the court issued an order directing distribution. There may be competing claimants (junior lienholders, taxing authorities, judgment creditors, or heirs).
• Check for any deadlines or statutory periods to assert a claim for surplus funds. If you find a potential deadline, act immediately.

3. Determine your legal basis to claim the surplus

Common valid claimants include:

• The former property owner (or the owner’s estate if the owner is deceased).
• Heirs or beneficiaries with probate authority (executor or administrator) who can show the owner’s interest passed to them.
• Other parties with recorded liens or judgments that had priority over the foreclosing lien.

If your mother is deceased, you will very likely need letters testamentary or letters of administration (probate authority) to recover funds from her estate. Contact the probate court for the county where your mother resided if probate has not already been opened.

4. Gather the documents you will need

Collect the documents the court will expect to see when you file a motion to determine or claim surplus funds:

• Proof of identity for the person claiming the funds (government ID).
• Proof of your legal relationship to the decedent (death certificate) and proof you are authorized to act (letters testamentary or letters of administration), or a copy of the deed/title if the former owner is alive and you are the owner.
• A copy of the foreclosure judgment, the deed of sale, and the sale certificate/return showing the sale price and any reported surplus.
• Records of liens, mortgage payoff statements, and any notices or correspondence from the foreclosure attorney, trustee, or sheriff.
• An affidavit or sworn statement explaining why you are entitled to some or all of the surplus (for example: “I am the decedent’s appointed personal representative and the heirs are entitled to proceeds of the sale after creditors are paid”).
• A proposed order for the judge to enter if you want the court to direct distribution to you or to the estate.

5. Draft and file the correct pleading (motion or petition)

Typical pleadings used in Tennessee include:

• A Motion to Determine Right to Surplus Proceeds (or similarly titled petition) filed in the foreclosure case requesting the court declare who is entitled to the funds and order distribution.
• If the surplus is small and the court allowed deposit with the clerk, you may be able to file a claim and request for distribution along with supporting documents rather than a lengthy motion.

Work with the local clerk to confirm local filing requirements (number of copies, filing fee, where to submit proposed order). Attach the supporting documents listed above and include a certificate of service showing you served all known interested parties (mortgagee, foreclosure attorney, junior lienholders, heirs, executor/administrator, taxing authority).

6. Serve notice on interested parties

Tennessee procedure requires you to serve all parties who might claim an interest in the surplus—this typically includes:

• The foreclosing mortgagee or its attorney.
• Any junior lienholders or creditors listed in the foreclosure record.
• The estate’s personal representative or known heirs (if you aren’t the representative).
• The county taxing authority if a tax lien exists.

Follow Tennessee Rules of Civil Procedure for service rules and file proof of service with the court.

7. Attend the hearing and present evidence

The court may schedule a hearing. At the hearing you should be prepared to present:

• Originals or certified copies of probate letters (if the owner is deceased).
• The foreclosure judgment and sale return showing the sale and any stated surplus amount.
• Affidavits or declarations establishing your claim (e.g., heirship affidavit, assignment documents, payoff ledgers).
• Evidence of any competing claims you dispute.

If the court finds you are entitled to the funds, it will enter an order directing the clerk or sheriff to pay you or the estate, possibly after subtracting costs or recognized liens.

8. If the clerk or sheriff refuses to pay or disputes ownership

If the office holding the funds refuses to release them after a court order, you can ask the court to enforce its order. If another party contests your claim, the court may hold an evidentiary hearing or require formal pleadings (e.g., interpleader or contest). In contested matters, consider getting attorney help.

9. Consider probate and estate issues if the owner is deceased

If your mother died owning the property, the surplus becomes part of her estate. Most counties require you to have court authority (letters) before the clerk will distribute funds. If probate is not open, open a probate case promptly and ask the probate judge to direct distribution of any surplus to the personal representative for the estate.

10. Common outcomes

• If you prove you are the rightful former owner (or the estate’s representative) and no superior claim exists, the court will order distribution to you or the estate.
• If other superior liens exist (taxes, other valid liens), those liens may be paid first and reduce or eliminate any surplus.
• Competing claimants may lead to a contested proceeding; the court decides based on priority and evidence.

Where to find Tennessee rules and statutes

For court rules and local administrative requirements consult the Tennessee Rules of Civil Procedure and the Tennessee court website for local forms and procedures:

• Tennessee Rules of Civil Procedure (motions, service, and procedure): https://www.tncourts.gov/rules/tennessee-rules-civil-procedure
• Search Tennessee Code Annotated (to review statutes on judicial sales, execution, and related topics): https://www.capitol.tn.gov/ — search terms such as “foreclosure”, “sale of property”, or “execution sale”.
• Tennessee Courts (general information and self-help resources): https://www.tncourts.gov/

Important note: County practices vary. The clerk of court or master commissioner in the county where the foreclosure occurred can tell you whether surplus funds are being held and the local procedures for claiming them.

When to get a lawyer

Consider hiring a Tennessee attorney if:

• There are competing claimants or complex lien priorities.
• The estate has not been opened and probate issues are involved.
• The holder of the funds refuses to release them despite a court order.
• You want help preparing pleadings, serving parties correctly, or representing you at a contested hearing.

Legal aid and local bar associations sometimes offer low-cost or pro bono help for estate and foreclosure matters if you cannot afford a private attorney.

Disclaimer

This article explains general Tennessee procedure and is for educational purposes only. This is not legal advice. Laws vary by fact pattern and change over time. For advice about your specific situation, consult a licensed Tennessee attorney.

Helpful Hints

• Start by calling the clerk of the court where the foreclosure judgment was entered; they can tell you whether surplus funds exist and who holds them.
• If the property owner is deceased, open probate promptly and obtain letters so the court will recognize your authority to claim funds.
• Gather the foreclosure judgment, deed of sale, sale return, and any lender payoff statements before drafting your motion.
• Serve all known interested parties and file proof of service—failure to serve can delay or derail your claim.
• Use plain, sworn statements to explain why you are entitled to the money (heirship affidavit, executor’s affidavit, etc.).
• Ask the clerk about local form templates—some counties provide a sample claim form or local practice for surplus claims.
• Act quickly—while exact deadlines differ, waiting increases the chance that other creditors or claimants will assert rights.
• Keep copies of everything you file and any court orders; the clerk must have a clear order before releasing funds.
• If you cannot afford an attorney, contact the Tennessee Bar Association or local legal aid organizations for low-cost help.