Detailed Answer — How survivorship rights affect surplus funds in Maryland

Short answer: possibly — but timing, deed language, and the foreclosure process matter. In Maryland, a recorded deed that creates a joint tenancy with right of survivorship or a tenancy by the entirety means ownership automatically passes to the surviving owner when the co-owner dies. If, at the time the foreclosure sale is finalized or the surplus is distributed, you are the sole record owner by operation of survivorship, you are generally the person entitled to recover surplus proceeds. If you claim survivorship to increase your share of surplus funds, you must prove you are the surviving owner and that no other lien, judgment, or legal claim defeats that interest.

This answer assumes common fact patterns. Example hypotheticals to illustrate key points:

• Hypothetical A — One owner dies before the foreclosure sale: If a deed names “A and B as joint tenants with right of survivorship,” and A dies before the foreclosure sale is completed, title vests in B as the surviving owner. If the foreclosure sale then produces surplus funds, B — as sole owner at the time of sale/distribution — is generally entitled to the surplus.
• Hypothetical B — One owner dies after the sale but before surplus distribution: If the foreclosure sale happens while both owners are alive, the distribution process may treat the proceeds as belonging to the record owners at the time of sale. If A dies after the sale but before the court/trustee distributes surplus funds, the survivorship rule may transfer full title to B before distribution, so B could be entitled to the full surplus. Exact treatment can depend on the timing of the sale, distribution procedure, and local practice.
• Hypothetical C — The deed does not include survivorship language: If the deed conveys the property as “A and B” without specifying “joint tenants” or “with right of survivorship,” Maryland may treat ownership as a tenancy in common. Tenants in common hold separate fractional interests that pass by will or intestacy, not by survivorship. In that case, the decedent’s estate (not the surviving co-owner) may be entitled to the decedent’s share of surplus funds.

Key legal points to check under Maryland law

1. Deed language and how title was created. Look for explicit words such as “joint tenants with right of survivorship” or “tenants by the entirety.” If the deed creates survivorship, title passes automatically at death.
2. Timing — date of death vs. date of sale vs. date of distribution. Who held legal title at the moment the court or trustee places the surplus into distributable status often controls who may claim it.
3. Recorded documents — Maryland follows the recorded deed and chain of title. You will need certified copies of the recorded deed showing the survivorship language, and a certified copy of the death certificate to prove the transfer by survivorship.
4. Other claims or liens — unpaid taxes, judgments, or subsequent liens may attach to the property or to the proceeds and reduce or eliminate surplus funds available to the owner. Bankruptcy involvement or claims by creditors can complicate recovery.
5. Procedures for claiming surplus funds in Maryland — surplus funds from a trustee or sheriff’s sale are typically held by the sale trustee, sheriff, or court. Maryland has specific rules and local procedures for how to make a claim, provide supporting documentation, and, if necessary, bring a petition to the circuit court for distribution. See Maryland Courts’ materials on foreclosure for procedural guidance: https://www.mdcourts.gov/legalhelp/foreclosure and Maryland Rules (Title 14) for sale and distribution procedures: https://www.courts.state.md.us/rules (see Title 14).

What you must produce to assert a survivorship claim

• Certified copy of the recorded deed showing the survivorship wording or tenancy by the entirety phrasing.
• Certified death certificate for the deceased co-owner.
• Proof of current record ownership (certified land records or an up-to-date title report).
• Any orders, filings, or notices created during the foreclosure sale that identify the parties entitled to the sale proceeds.
• Identification and documentation of any other liens, bankruptcy filings, or creditor claims that might affect entitlement.

What to expect if there is a dispute

If another claimant (for example, the decedent’s estate, a creditor, or a co-tenant claiming tenancy in common) contests your claim, the dispute may require a petition to the circuit court to determine entitlement. The court will weigh deed language, recording dates, date of death, and equitable factors. If you cannot document survivorship clearly, the court may require additional evidence or may divide the surplus according to equitable ownership rather than survivorship.

Practical impact

Asserting survivorship can be a straightforward paperwork exercise when the deed and records are clear and the sale process preserved title issues correctly. When documents are ambiguous, death timing is close to sale date, or creditors press claims, you may need to file a formal court claim and possibly hire an attorney experienced in Maryland foreclosure and estate issues to protect your rights.

Important statutory and procedural resources

• Maryland Courts – Foreclosure information and resources: https://www.mdcourts.gov/legalhelp/foreclosure
• Maryland Rules — Title 14 (Actions — Real Property) for sale and distribution rules: https://www.courts.state.md.us/rules (see the Title 14 rules for sale and distribution procedures)
• Maryland State Law Library — general real property resources and guidance on forms of ownership (search for joint tenancy, tenancy by the entirety, and real property): https://www.lawlib.state.md.us/

Helpful Hints

• Start by obtaining a certified copy of the deed from the county land records where the property is recorded. Confirm whether the deed explicitly creates a right of survivorship or tenancy by the entirety.
• Get a certified copy of the death certificate for the deceased co-owner. That is usually required to show the survivorship transfer.
• Check the foreclosure sale date and the date the surplus was set aside for distribution. The owner of record on the critical date controls entitlement.
• Contact the trustee, sheriff, or clerk handling the surplus to ask about the local claim form and required documentation. Different counties use different clerks or trustees for surplus funds.
• Search for other recorded liens or a bankruptcy docket that might affect your claim. Creditors with valid liens may have priority over an owner’s surplus claim.
• If the deed is ambiguous or there is a dispute, consult a Maryland attorney experienced in foreclosure and probate/title disputes. If you intend to file a petition or response in court, legal representation is often helpful.
• Act promptly. Statutory or local deadlines may apply to claiming surplus funds or responding to competing claims.
• Keep copies of all recorded documents, correspondence, and receipts. Certified filings and recorded documents are persuasive proof in court.