Overview

If a foreclosure sale of a deceased person’s home produced more money than was owed on the mortgage, the excess—called “surplus” or “overage”—belonged to the decedent. When the decedent’s estate was never opened in probate, heirs or other interested persons must take steps to recover that surplus. This article explains, in plain English, what to do in Arkansas, who can claim the money, and the common routes to get paid.

Who legally receives foreclosure surplus money in Arkansas?

The surplus is an asset of the decedent’s estate. If the decedent left a valid will, the personal representative (executor) named in the will handles estate assets. If there is no will or no personal representative has been appointed, the decedent’s heirs at law are the parties with claim to the surplus. Arkansas probate and intestacy rules determine who those heirs are; see Arkansas probate statutes for how heirs and administration are handled: https://www.arkleg.state.ar.us/.

How to confirm whether surplus funds exist and who holds them

Find the foreclosure sale record. Obtain the sale paperwork from the county circuit clerk or the trustee/attorney who handled the sale. The sale record should show whether the sale produced a surplus and where those funds were deposited.
Identify the holder of the funds. In judicial foreclosures the court often orders the surplus paid to the circuit clerk or deposited into the court registry. In non‑judicial trustee sales the trustee or title company may be holding surplus funds until proper claimants appear. Contact the clerk, trustee, or sale attorney for precise instructions and documentation of the deposit.

Practical routes to recover the surplus when no probate exists

When the estate was never probated, typical ways to get the surplus are:

Open probate (full administration). File a petition in the appropriate Arkansas circuit court to open an estate and appoint a personal representative. After appointment, the personal representative can claim estate assets, including surplus funds, and distribute them under Arkansas probate rules.
Use a small‑estate or summary procedure (if eligible). Many states allow simplified procedures for lower‑value estates or certain assets without full administration. Arkansas has statutory procedures for summary administration and simplified matters under its probate laws. Check local circuit clerk guidance to see whether you qualify to claim the surplus without full probate.
File a direct petition with the court holding the funds. If the court (or clerk) holds the surplus, you may file a petition asking the court to release the funds to you as an heir, or asking the court to direct distribution to a named personal representative. The court will generally require proof of death and proof of heirship before releasing funds.
Collect by written claim with supporting documents. If a trustee or title company is holding the funds, they often require a written claim together with certified copies of the death certificate, an affidavit of heirship or a certified copy of the will, photo ID, and sometimes an order from the probate court or a simple affidavit approved by the county clerk.

Common documents and proof you will likely need

Certified death certificate for the decedent.
Proof of relationship to the decedent (birth certificate, marriage certificate, affidavits from family members).
Copy of the will, if any, and any documents showing appointment of a personal representative.
Photo ID for the person claiming the funds.
Foreclosure sale paperwork showing the surplus and the entity holding the funds.
Affidavit of heirship or small‑estate affidavit if applicable and allowed by the clerk or trustee.

What to expect at court or when dealing with the holder of funds

The clerk or judge will want clear proof of who the lawful heirs are or who has authority to receive estate assets. If multiple heirs exist, the clerk will likely require either:

a court order appointing a personal representative and approving distribution, or
a signed agreement among heirs and a verified claim that the claimant has authority to receive the funds on behalf of the group.

When the claimant cannot show clear heirship, the court may require a hearing to determine rightful recipients. If no one claims funds, the court or holder may hold funds until a proper claimant appears or until any applicable hold/forfeiture period ends under Arkansas law.

When to act and why speed matters

Act promptly. Delays can create problems: records get harder to locate, lienholders or creditors might assert claims, or the holder may be required to remit unclaimed property according to state rules. If you learn a surplus exists, contact the county circuit clerk or the holder of proceeds quickly to learn claim deadlines and procedures.

What if heirs disagree or the identity of heirs is unclear?

If multiple people claim the same funds or the heirship chain is contested, expect the court to require a formal probate or a declaratory action to settle ownership. In such cases, the court can appoint a personal representative to collect assets and distribute them under Arkansas law.

Where to find Arkansas statutory and court resources

For statutory language and to find forms or local rules, start with the Arkansas Legislature and Arkansas courts:

Arkansas Legislature (Arkansas Code / statutes): https://www.arkleg.state.ar.us/
Arkansas Judiciary resources and local circuit court contact information: https://www.arcourts.gov/
Arkansas Vital Records (to order certified death certificates): https://www.healthy.arkansas.gov/

When to get help from a lawyer

Consider hiring an attorney if:

Multiple heirs dispute distribution.
Large surplus or complex liens/creditor claims exist.
The holder refuses to release funds without a court order.
You are unsure whether a simplified procedure applies.

An attorney who handles Arkansas probate and real‑estate/foreclosure matters can advise which statutory procedure to use and can prepare the petition or affidavit needed to obtain the money.

Helpful Hints

Start at the county circuit clerk where the foreclosure was filed. Clerks can tell you whether surplus funds exist and where they are held.
Get certified copies of the death certificate early. Many claimants fail because they cannot produce certified proof of death.
Collect proof of relationship (birth, marriage records). An affidavit of heirship (signed by people who knew the family) can help but courts often prefer documentary proof.
Ask the clerk whether Arkansas’ small‑estate or summary procedures apply—those can save time and legal fees.
If the trustee or sale attorney holds funds, request in writing a list of documents they require to release the funds.
Do not sign away your rights to estate funds without getting independent advice if you are an heir; avoid quick settlements that do not document full distribution.
Be prepared for a court hearing if anyone contests the claim. Bring originals of all documents and certified copies where required.

Disclaimer: This information is educational and does not constitute legal advice. Laws and procedures change. For advice about your specific situation in Arkansas, consult a licensed Arkansas attorney or contact the circuit court clerk in the county where the foreclosure occurred.