Detailed Answer
After a mortgage foreclosure sale in Michigan, any funds remaining after paying the mortgage debt, costs, and fees are known as surplus funds. Michigan law directs the sheriff or court officer to report and deposit these surplus funds with the court clerk for interested parties to claim. To determine if surplus funds exist in a specific foreclosure case, follow these steps:
- Locate the foreclosure case: Foreclosure actions in Michigan take place in the circuit court of the county where the property lies. Identify the case number, parties, and sale date by reviewing public notices or searching the Michigan Courts online docket (courts.michigan.gov).
- Request the certificate of distribution: Under Michigan Compiled Laws § 600.3240, the officer who conducts the sale must file a certificate of distribution showing how sale proceeds were allocated. This certificate lists any surplus funds. Obtain it from the circuit court clerk. (See MCL 600.3240.)
- Review court records: The clerk’s register of actions will include entries for the foreclosure judgment, sale, and distribution order. Examine the docket to confirm whether surplus funds were recorded.
- Check with the county treasurer: Some counties transfer unclaimed foreclosure surplus to the county treasury or a dedicated surplus fund. Visit the county treasurer’s website or contact the office to search for unclaimed funds tied to the property address or case number.
- File a disbursement request: If you are entitled to the surplus (for example, the former homeowner or a junior lienholder), you must file a motion or application for disbursement with the circuit court. Include proof of your interest, such as a lien document or redemption right, and follow local court rules for filing and fees.
Note: Under Michigan law, delays in claiming surplus funds can jeopardize your right to recovery. Act promptly once you identify a potential surplus.
Helpful Hints
- Write down the foreclosure case number and sale date before contacting any office.
- Use the Michigan Courts online case search to access dockets and filings from home.
- Check local court rules for required forms and filing fees when requesting a certificate of distribution.
- Search county treasurer unclaimed property databases regularly, as some treasurers list surplus funds publicly.
- If multiple lienholders are involved, consider getting legal advice to help determine priority and entitlement.