Detailed Answer
Disclaimer: This is general information and not legal advice. For personalized advice, contact a licensed Maryland attorney.
When a Maryland property is sold at a foreclosure sale and the sale price exceeds the amounts owed (mortgage, costs, and senior liens), the extra money is called surplus (or overage). If your mother’s property was foreclosed, you may have a right to some or all of those surplus funds, but you must take specific steps to assert that right in the Maryland courts.
High-level overview of the steps
- Confirm whether there is a surplus and who currently holds it.
- Gather proof that you are the person entitled to the surplus (owner, heir, personal representative).
- Open probate or obtain letters if the estate is not already probated and you claim the surplus as an heir or personal representative.
- File a motion or petition in the Circuit Court where the foreclosure sale occurred asking the court to determine who is entitled to the surplus funds.
- Serve the motion on all parties with a possible claim (lienholders, mortgagee, trustee, foreclosure counsel) and attend any hearing.
Step-by-step details
1. Confirm the sale details and locate the funds
Start at the land records and the court where the sale took place (usually the Circuit Court for the county where the property is located). Look for the trustee’s or substitute trustee’s deed of sale, the certificate of sale, and the account of sale or distribution. The foreclosure trustee or counsel often holds or distributes funds after the sale. If a surplus exists, you should be able to find an accounting or distribution statement in the court file or land records.
2. Identify who currently holds the surplus
The trustee or foreclosure law firm frequently retains surplus funds until the court orders distribution. The foreclosure sale paperwork will list the trustee/attorney who handled the sale and the Clerk of Court where sale accounting was filed. Contact them to ask whether surplus funds exist and how they are being held.
3. Establish your legal right to the funds
To claim surplus you must show a legal interest in the property or in your mother’s estate. Common forms of proof:
- Recorded deed showing ownership;
- Death certificate for your mother;
- Will and letters testamentary (if you are the personal representative);
- Letters of administration (if you were appointed administrator);
- Probate court documents confirming heirs or estate representatives.
If the decedent’s estate has not been opened in probate, many courts require you to open a probate estate or obtain court authority (letters) before they will distribute surplus funds to heirs. See Maryland information about probate and registers of wills at the Maryland Judiciary site for your county: https://www.mdcourts.gov/agencyservices/probate.
4. Prepare and file a motion or petition in Circuit Court
Typically you will file something titled a petition, claim, or motion to determine entitlement to surplus funds in the Circuit Court where the foreclosure sale was recorded. The filing should include:
- A caption with the court, case number (if there is a foreclosure case number), and the parties;
- A clear statement of your relationship to the decedent and interest in the property (owner, heir, personal representative);
- Records showing the foreclosure sale and that a surplus exists (deed of sale, accounting, or trustee statement);
- Supporting documents: death certificate, will, letters of administration/testamentary, recorded deed, ID for claimant;
- A proposed order for the judge that names you as the person entitled to the surplus and directs the clerk or trustee to distribute the funds to you.
Maryland’s court rules that cover foreclosure practice can affect procedure and required filings. See Maryland Rules, Title 14 (Foreclosure) for procedure and filings: https://mdcourts.gov/sites/default/files/import/rules/Title%2014.pdf.
5. Serve notice on interested parties
You must serve the motion/petition and supporting documents on all parties who could claim the funds: the foreclosure trustee, mortgagee, any lienholders shown in the land records, and sometimes the purchaser at the sale. The court clerk can tell you service requirements; usually you must follow Maryland Rules for service in civil matters.
6. Attend the hearing and be prepared for competing claims
The court will schedule a hearing. Expect that other parties may claim the surplus (creditors, subsequent lienholders, or co-owners). The judge will weigh documentary proof and may require additional evidence. If the court finds you are entitled, it will sign an order directing payment of the surplus to you or to the estate’s representative.
Time limits and competing claims
There is no single uniform “surplus claim” statute with a short special deadline for all situations, but delays can jeopardize your claim. Creditors and lienholders may assert priority based on recorded liens or judgments. If the decedent had unpaid debts or the estate is open, the estate’s creditors may have claims. Open probate promptly if you are an heir or personal representative. Act as soon as you learn of the surplus: locate the trustee, preserve documents, and file your petition without unnecessary delay.
When to involve a lawyer
Consider hiring a Maryland attorney if:
- There are competing claims from creditors, co-owners, or lienholders;
- The estate is complex or the title is unclear;
- You need assistance with probate or letters of administration;
- The trustee or foreclosing party refuses to disclose whether a surplus exists or refuses to pay without a court order.
Local probate and foreclosure practice can vary by county. For practical guidance about foreclosure procedure and forms, see the Maryland Courts’ consumer foreclosure pages: https://www.mdcourts.gov/foreclosurefaq.
Helpful Hints
- Act quickly. Find out whether the foreclosure sale produced a surplus as soon as possible.
- Search the land records and court docket in the county where the property is located for sale and distribution papers.
- Get and keep certified copies of key documents: death certificate, deed, will, letters testamentary/adminstration.
- If the estate is not probated, open probate or get limited probate authority before asking the court for surplus funds.
- Contact the trustee or foreclosure counsel in writing to request information about any surplus—get a written accounting if available.
- Serve all potentially interested parties—failure to properly serve can delay your claim.
- Bring originals and certified copies to your hearing; the judge will want reliable proof of heirship or authority to receive funds.
- If you are on a tight schedule, consult a Maryland attorney experienced in probate and foreclosure distribution—many offer a short consultation to explain next steps.
Useful Maryland resources:
- Maryland Rules, Title 14 (Foreclosure): https://mdcourts.gov/sites/default/files/import/rules/Title%2014.pdf
- Maryland Courts foreclosure information: https://www.mdcourts.gov/foreclosurefaq
- Maryland Judiciary probate and registers of wills information: https://www.mdcourts.gov/agencyservices/probate
Final note: This article explains typical Maryland procedure for seeking surplus funds after foreclosure. It is general information only and not a substitute for legal advice about your specific situation. For next steps tailored to your facts, consider contacting a Maryland probate or real property attorney.