Detailed Answer — what to know and what to do

When a Maryland property is sold at a foreclosure sale for more than the debt and sale costs, the extra money (the surplus or excess proceeds) does not automatically go to the lender. Surplus funds belong to the property owner or to anyone legally entitled to inherit from the owner. If the owner died and no probate was opened, heirs must take steps to identify and claim those funds from the court that handled the foreclosure sale.

Step 1 — Confirm there are surplus funds and locate the foreclosure file

• Contact the clerk of the circuit court where the foreclosure sale occurred. Ask whether the sale produced excess proceeds and whether the clerk is holding funds or whether the court ordered distribution.
• Get the foreclosure case number, the name of the substitute trustee or commissioner, and any docket entries that note a surplus or appointment of a receiver for the surplus.

Step 2 — Determine who has legal title or legal priority to the surplus

• If the decedent had a will or an opened estate, the personal representative (executor or administrator) usually claims the funds for the estate and then distributes them under probate rules.
• If the decedent died intestate (no will) and no probate was opened, Maryland law gives succession rights to close family members. Those heirs may need to prove heirship before the clerk will release funds.

Step 3 — Gather proof you are entitled to the funds

Common documents the court will require:

• Death certificate for the property owner.
• Proof of your relationship to the decedent (birth certificates, marriage certificate, family records).
• Title or deed information showing the decedent as the owner before the sale.
• Any will or estate documents if one exists.
• Identification for the person claiming the funds.

Step 4 — Choose a legal path to claim the surplus

Common options in Maryland when no probate exists:

• File a petition in the circuit court that handled the foreclosure asking for distribution of the surplus to the person(s) entitled under intestacy or the will. The court may require a hearing and proof of heirship.
• Open a probate or small-estate administration and have the personal representative request distribution of surplus funds to the estate, then distribute to heirs. The Maryland Courts website explains estate administration and small estate procedures in plain language (see resources below).
• If the surplus is small and the state’s small-claims or simplified probate procedures apply, use those streamlined processes to obtain a court order releasing the funds.

Step 5 — File the correct documents and follow court procedures

Typical filings include a petition for surplus proceeds (or motion for distribution), a certified copy of the death certificate, an affidavit of heirship (if accepted by the court), and any required court forms for probate or small estate administration. The clerk’s office can tell you the local filing requirements and fees.

Practical considerations

• Act promptly. Courts and trustees may have deadlines or statutes of limitation for claiming surplus funds.
• If multiple people claim the same surplus, the court will decide distribution. Expect potential disputes among siblings, spouses, or creditors.
• If the foreclosure case had an attorney for the lender or trustee, that attorney may have filed a motion related to surplus funds. Review the foreclosure docket or ask the clerk for recent entries.

Where to get authoritative Maryland information and forms

• Maryland Courts — Foreclosure information and self-help: https://www.mdcourts.gov/legalhelp/foreclosure
• Maryland Courts — Probate and estate administration self-help: https://www.mdcourts.gov/legalhelp/estate
• Contact the circuit court clerk in the county where the property sat. Circuit clerks maintain foreclosure dockets and can tell you if surplus proceeds remain and how to file a petition for distribution: https://www.mdcourts.gov/circuit

Bottom line: To claim surplus funds from a foreclosure of a deceased parent in Maryland when the estate was never probated, locate the foreclosure file, gather proof of death and heirship, and either (1) file a petition in the foreclosure court to release the surplus to the rightful heirs, or (2) open a probate or small-estate administration and request distribution of the funds to the estate for distribution to heirs. The circuit court clerk and the Maryland Courts self-help pages are useful starting points.

Disclaimer: This article explains general steps and is educational only. It does not constitute legal advice. For help applying these steps to your specific situation, consult a Maryland attorney who handles probate and foreclosure matters.

Helpful Hints — make claiming surplus funds easier

1. Start at the circuit court clerk’s office for the county where the property was located — they can tell you if surplus funds exist and what the local filing process requires.
2. Bring originals and certified copies: a certified death certificate and certified copies of vital records (birth or marriage) that prove heirship.
3. Search the foreclosure docket online (many Maryland circuit courts publish dockets) or ask the clerk for a certified docket to see whether a distribution order was already issued.
4. If heirs agree, choose one heir to act as petitioner to minimize multiple filings; be ready to provide a signed agreement among heirs for distribution if appropriate.
5. Consider a small estate affidavit or simplified probate if the estate qualifies — it often saves time and expense versus full administration. The Maryland Courts probate pages explain qualifications and forms.
6. Expect to provide proof of unpaid debts or liens if creditors are asserting a claim; creditors sometimes claim surplus funds too.
7. Keep thorough records of every document you file and every communication with the clerk or trustee. Photocopy everything and date-stamp deliveries when possible.
8. If the foreclosure sale was recent, talk to the trustee or substitute trustee’s attorney — they often know whether excess proceeds remain and how to request them.
9. If multiple heirs are involved or if the case appears contested, consult a Maryland probate or real-estate attorney to avoid mistakes that could delay or forfeit a claim.