How to Prove Ownership When Filing a Surplus Funds Claim in Illinois

Detailed Answer

When a property sells at a judicial or sheriff’s sale in Illinois for more than the amount owed, the extra money (surplus or excess proceeds) becomes available for claim by persons or entities with a valid legal interest. To recover those funds you must both show you are entitled to them and supply the proof the county or court requires. Requirements vary by county, but Illinois law governing judicial sales and distribution of proceeds appears in the Illinois Code of Civil Procedure (735 ILCS 5/), which is the statutory framework counties follow for sales and distributions. See the Illinois General Assembly site for the Code of Civil Procedure: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2058&ChapterID=60

Who can claim surplus funds?

Typical claimants include the former property owner (the mortgagor), junior lienholders, judgment creditors with a recorded interest, assignees of the owner’s rights, heirs or personal representatives of a decedent-owner, trustees of a trust that held title, or a business entity that owned the property. The claimant must show a legal right to the funds and prove identity and authority to collect.

Common documentation counties require to prove ownership and entitlement

Counties often require a combination of identity documents plus documentary proof of title or legal authority. Commonly requested items include:

Photo identification: government-issued photo ID (driver’s license or passport) for the person making the claim.
Proof of ownership or title: recorded deed(s) showing the claimant owned the property at the time of sale or immediately prior to the foreclosure. A title report or abstract that shows a chain of title can substitute when a deed was not directly in the claimant’s name.
Foreclosure and sale documents: the sheriff’s sale report, court order of sale, purchaser’s deed, or the final disposition papers that identify the sale and the surplus.
Recorded liens or assignments: if you are a lienholder or assignee, provide the recorded judgment, mortgage, assignment, or other recorded instrument proving your interest.
Probate documents for deceased owners: certified copy of death certificate plus Letters Testamentary, Letters of Administration, or a court order appointing a personal representative showing authority to act for the estate.
Trust documents (if title held in trust): the trust agreement (or relevant excerpt) and a trustee certificate or other document that shows the trustee’s authority to act and that the trust owned the property.
Corporate or LLC claimants: articles of incorporation/organization, current good-standing certificate, corporate resolution or meeting minutes authorizing the claim, and an officer’s photo ID.
Power of Attorney: a notarized, recorded (if required by county) power of attorney that authorizes the agent to claim funds on behalf of the owner, plus the agent’s ID.
Heir or beneficiary claims: certified copy of the will (if any), probate order naming heirs, or other court document confirming the person’s status as heir or beneficiary.
Assignment paperwork: written and, if applicable, recorded assignment showing transfer of the owner’s right to the surplus.
Affidavit or verified claim form: most counties require a sworn affidavit or verified claim form that explains the claimant’s relationship to the property and the basis for the claim (original signature and notarization often required).
Tax identification and tax forms: a W-9 or taxpayer identification number is commonly required before funds are released for tax-reporting purposes.

Practical details and document handling

Provide certified copies where requested. Counties commonly require certified or notarized copies of death certificates, probate orders, recorded deeds, and corporate documents.
Bring originals to an in-person appointment if the county asks to verify documents, but submit copies unless originals are explicitly requested.
If your documents are in another person’s name (for example, the decedent or a different owner), add probate or trust paperwork or a recorded assignment showing legal authority to claim the funds.
If ownership changed after the date of the sale, you must show the chain of title that documents who held the interest at the time of the sale and any later transfers that affect entitlement.

Typical steps to file a surplus funds claim in Illinois

Identify the correct office handling the surplus (county clerk, county treasurer, or sheriff) by checking the county’s sheriff or circuit court website.
Obtain and complete any county claim form and prepare a sworn affidavit describing your interest.
Assemble supporting documents listed above and certified copies if required.
Include a W-9 or taxpayer ID if the county requires it for disbursal.
File the claim within the deadline set by the county or by statute. (Deadlines vary by county and case.)
If the county denies your claim, you may need to seek relief in court (for example, by filing a petition in the circuit court that handled the sale).

When ownership is disputed or unclear

If multiple parties claim the funds, or the ownership chain is unclear, the county or clerk may refuse to release funds until a court determines the rightful claimant. Common issues include competing heirs, unrecorded assignments, or liens that weren’t properly perfected. In those situations you often need a court order deciding distribution.

Helpful Hints

Contact the county clerk, county Treasurer, or sheriff’s office that handled the sale first. They can provide the exact claim form, list of required documents, and any filing deadlines for that county.
Get certified copies of recorded documents from the county recorder’s office—these are often required instead of photocopies.
If the owner died, get the certified death certificate and the probate paperwork early—probate can take time.
When representing a business, include a current good-standing certificate and a corporate resolution naming the individual authorized to claim funds.
Keep a clear cover letter and a checklist of what you’ve included when you submit a claim—county staff prefer organized submissions.
Ask whether the county will accept scanned/email copies for an initial review but expect to provide originals or certified copies before disbursement.
Consider a title company or attorney if the chain of title is complex, multiple claimants exist, or the county requires a court determination.

Resources: Illinois Code of Civil Procedure (judicial sale provisions): https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2058&ChapterID=60. For county-specific procedures, check the local county sheriff or circuit clerk website where the sale occurred.

Disclaimer: This article is for general informational purposes only and is not legal advice. It does not create an attorney-client relationship. Laws and procedures change and vary by county; consult a licensed Illinois attorney or the county office handling the sale to confirm the exact requirements for your situation.