Detailed Answer
After a nonjudicial foreclosure sale under Washington’s Deeds of Trust Act (RCW 61.24), the trustee first applies sale proceeds to pay costs, fees and the outstanding loan balance. If the sale yields more than these obligations, the trustee must attempt to deliver the surplus to the former homeowner or other parties with a recorded interest in the property. To determine if surplus funds remain, follow these steps:
- Identify the trustee or trustee’s agent. The notice of sale published before the auction names the trustee and their contact information. You can find that notice in the real property records at the county auditor’s office or on the trustee’s website.
- Request a post-sale accounting. Within 60 days after the sale, the trustee must provide an accounting of proceeds upon written request. See RCW 61.24.130 (Disposition of proceeds): https://app.leg.wa.gov/RCW/default.aspx?cite=61.24.130.
- Check the trustee’s surplus funds log. Many trustees maintain an online registry of surplus-funds claims. Search by property address or trustee file number.
- Search county superior court records. If the trustee cannot locate the original owner or lienholder, they may deposit the surplus with the county clerk under RCW 61.24.135: https://app.leg.wa.gov/RCW/default.aspx?cite=61.24.135. Contact the clerk’s office to ask whether surplus funds were deposited.
- File a claim before the deadline. An interested party generally has one year from the sale date to petition the superior court for a distribution of surplus funds. Check local court rules for filing requirements. If you miss the deadline, the right to surplus funds terminates.
By tracking the trustee’s records and checking court deposits, you can confirm whether any surplus remains and pursue a claim promptly.
Helpful Hints
- Keep the trustee’s sale date and file number handy when you call or email.
- Review the county auditor’s online real property portal for sale notices.
- Ask for a written accounting of fees and disbursements to verify calculation of surplus.
- Confirm the one-year claim deadline with the county clerk to avoid forfeiture.
- Consider hiring a real estate attorney if you encounter difficulty obtaining records or filing court papers.