FAQ: Claiming surplus funds after a tax foreclosure sale in Louisiana

Short answer: If a tax foreclosure sale of real property generated money in excess of the taxes, penalties, interest, and sale costs, that excess (the “surplus”) may be payable to certain parties such as the former owner, heirs, or secured creditors. In Louisiana, the local sheriff or tax collector handles the sale and the parish office will have the record of any surplus. To pursue those funds you must promptly identify the surplus, assemble proof of your claim, and follow the parish procedure for filing a claim or seeking a court order directing distribution.

Detailed answer — how the process generally works in Louisiana

1. Who receives surplus funds?

The people or entities with priority to a surplus usually include, in order of priority: (a) any lawful lienholders or creditors that have a superior right under Louisiana law; (b) the former owner of the property (or the owner’s heirs or successors in interest). The exact priority can depend on recorded mortgages, liens, and the timing of those interests.

2. Where the surplus goes after the sale

After a tax sale, the sheriff or tax collector first applies sale proceeds to pay the delinquent taxes, penalties, interest, and the costs of advertising and conducting the sale. Any remaining funds are treated as surplus. Parishes commonly hold surplus funds in the sheriff’s or the parish treasury account or they may be deposited with the clerk of court pending resolution of competing claims.

3. How to find out if a surplus exists

• Contact the parish sheriff’s office or the parish tax collector that conducted the tax sale. Provide the property address or the sale docket number.
• Request a copy of the tax sale return, the certificate of sale, and any accounting showing proceeds and distributions.
• Ask whether any claims have already been filed and whether funds remain on hand.

4. Who can claim the surplus and what proof you will likely need

• Former owner (or heirs) — proof of identity and proof of ownership or succession (deed, title history, death certificate, succession or probate documents).
• Mortgagee or lienholder — proof of lien priority (recorded mortgage, assignment, payment ledger) and documentation showing the lien remains unpaid at the time of sale.
• Representative (attorney or agent) — notarized authorization or power of attorney plus the claimant’s underlying documentation.

5. How to file a claim

1. Start at the sheriff’s office or tax collector that ran the sale. Many parishes provide a written claim form or instructions for surplus claims.
2. Submit required documents (identity, proof of interest, lien documents, death certificate and succession papers if claiming as an heir) and a clear statement of the amount you claim.
3. If the sheriff or parish cannot approve the claim because multiple parties claim the same funds, the matter may need to be resolved in the district court where the property is located. That can require filing a petition or rule to determine distribution.

6. Timing and deadlines

Timing rules vary by parish and by the applicable statutes and court practice. Some parishes allow claims only within a set period after the sale or after notice; in other cases prescription (statute of limitations) may affect the right to recover funds. Act promptly. If you wait too long, you may lose the right to the surplus or face additional legal steps to recover it.

Where to find the governing law and official guidance

Louisiana law governing tax sales and related procedures appears in Title 47 (Revenue and Taxation) of the Louisiana Revised Statutes. For statute language and to locate specific provisions, search the Louisiana Legislature website:

Louisiana Legislature — Law Search (search Title 47)

For local practice, contact the parish sheriff’s office, parish tax collector, or the clerk of district court in the parish where the property sits. The Louisiana Department of Revenue provides general tax resources and contact info for parish tax offices at:

Louisiana Department of Revenue

When you may need a court order

If multiple parties claim the same surplus funds and they cannot be resolved administratively, a party may need to ask the district court for a declaratory judgment or for an order directing payment. Courts determine competing claims by examining recorded interests, succession or probate documents, and equity between the parties. An attorney can prepare and file the necessary pleadings, gather evidence, and represent you at any hearing.

Helpful Hints

• Act quickly — contact the parish sheriff or tax office as soon as you learn of the sale.
• Gather clear documentary proof: proof of ownership, death certificate, succession or probate papers, recorded mortgage or lien documents, and the tax sale docket number or certificate of sale.
• Ask the sheriff for a written statement showing sale proceeds, payments made for taxes and costs, and the amount (if any) of surplus on hand.
• If you are an heir, bring certified copies of the death certificate and succession judgment or other court documents showing your authority to collect.
• If a lender claims a priority lien, obtain the recorded mortgage or assignment and payment history showing your claim is superior.
• Be prepared to file a formal claim or court action if multiple claimants exist. An attorney can speed resolution and reduce mistakes.
• Keep copies of everything you submit and request written confirmation of receipt from the sheriff or clerk.
• If you cannot locate the parish contact info, use the Louisiana Department of Revenue or the parish government website to find the sheriff and tax collector details.

Next recommended steps

1. Locate the parish where the property sat and contact that parish’s sheriff and tax collector. Request the sale paperwork and ask whether surplus funds remain.
2. Collect identity and ownership documents, death certificate, and any lien or mortgage records.
3. If the parish requires a court proceeding or if you face competing claims, consult a Louisiana attorney experienced in tax sales, succession, or real estate litigation to prepare filings and represent you.

Disclaimer: This article is for general informational purposes only and is not legal advice. It does not create an attorney-client relationship. Laws and local procedures vary by parish and change over time. For legal advice about a specific situation, consult a licensed Louisiana attorney.