Detailed Answer — Proving Ownership for a Michigan Surplus Funds Claim
Short answer: To claim surplus funds from a Michigan foreclosure or sheriff sale you must show documentary proof that you owned the property interest entitled to the surplus at the time of the sale (or that you lawfully succeeded to that interest). That proof typically means certified, recorded documents from the county register of deeds plus supporting identity and authority documents (trust papers, death/estate documents, corporate paperwork, power of attorney, etc.).
This article explains the common documents courts and county officials expect, why each matters, and steps to submit a complete claim. This is educational information only and not legal advice. For legal guidance about your facts, contact a Michigan attorney.
Where surplus claims are filed in Michigan
Surplus funds after a sheriff or court-ordered sale are handled by the county sheriff or the court that conducted the foreclosure. Procedures vary by county. Start by checking the sheriff’s sale paperwork and the circuit court docket where the foreclosure was handled. For state law and court rules, see the Michigan Legislature and Michigan Courts sites:
legislature.mi.gov and
courts.michigan.gov.
Core documents that prove ownership or entitlement
Collect as many of the following as apply to your situation. Provide certified copies of recorded instruments whenever possible.
- Recorded deed(s) — Certified copy of the deed that shows you (or your predecessor) as the record owner on the date of sale. Get this from the county Register of Deeds. This is the primary proof of title for most homeowners.
- Title insurance policy or title search / abstract — A title policy or a recent title search showing chain of title supports ownership and reveals recorded liens or transfers.
- Recorded mortgage, assignment, or lien documents — If you are claiming as a former lienholder, mortgage assignee, or other secured party, provide the recorded mortgage and any recorded assignments proving your right to proceeds.
- Sheriff’s sale paperwork and court file — Copies of the sale notice, sheriff’s return, and the foreclosure court docket entries show the sale date, purchaser, and whether any surplus was created. Pull certified copies from the circuit court clerk.
- Death and probate documents (if owner is deceased) — Certified death certificate plus letters of authority, letters testamentary, or court order appointing a personal representative. If property passed by trust, include the trust instrument and a certification of trust or trustee’s affidavit.
- Trust documents — If title was held in trust, provide the trust agreement (or a certified copy) and a certification of trustee name and authority, and evidence that the trustee had authority when the sale occurred.
- Business / corporate documents — For companies, include articles of incorporation/organization, a certificate of good standing, an operating agreement, and a corporate resolution (or other document) authorizing the person who will sign the claim.
- Power of attorney — A notarized, valid POA showing authority to act for the owner. Some county officials will require the POA to be recorded.
- Recorded assignment or release (if applicable) — If title or lien rights moved by assignment, record copies of those assignments.
- Identification and tax documents — Government photo ID for the claimant, Social Security number or EIN (for tax reporting and payout), and a completed IRS Form W‑9 when funds will be disbursed to an individual or entity.
- Settlement or closing statements — HUD-1/closing statements or cancelled checks that show payment history or confirm ownership at closing can help in close cases.
How those documents are used
Officials and courts use documents to answer two questions:
- Who had the legal or equitable interest in the property at the time of the sale?
- If that person or entity no longer holds the interest, who succeeded to it and can legally claim the surplus?
Recorded deeds and instruments show legal title. Trust instruments, probate orders, or corporate records show legal succession. Identity documents and a W‑9 are typically required before funds are released so the sheriff or court can complete tax reporting and disbursements.
Common scenarios and the documents typically required
- Homeowner who lost property to foreclosure: Provide the recorded deed showing ownership before sale, the foreclosure docket/sheriff sale papers, and photo ID. If the homeowner died before the claim, provide a death certificate and probate letters or trust documents.
- Junior lienholder or judgment creditor: Provide the recorded lien instrument (mortgage or judgment), assignment documents (if you bought the lien), and the sheriff’s sale records showing surplus.
- Heir or beneficiary: Provide a certified copy of the death certificate, probate court letters, or a court order confirming distribution, and any recorded deeds showing transfer to the heir.
- Trustee claiming for a trust: Provide the trust instrument (or certification of trust), evidence trusteeship, and the recorded deed or transfer documents showing title in the trust.
- Corporate claimant: Provide formation documents, corporate resolution authorizing claimer, and recorded deed or assignment showing the corporation’s interest.
Filing steps and practical tips
- Contact the county sheriff’s office and the circuit court clerk where the foreclosure was handled to learn that county’s claim form and filing requirements.
- Obtain certified copies of all recorded documents from the county Register of Deeds rather than photocopies. Certified documents carry more weight and are usually required.
- Prepare a short, verified claim or affidavit describing your interest, attach supporting documents, and sign under penalty of perjury if required.
- Include certified ID, a W‑9, and contact information for disbursement if your claim is allowed.
- File promptly and watch the court docket. Other parties may object; be prepared to attend a hearing and provide originals or certified copies.
When to hire a Michigan attorney
If multiple claimants dispute entitlement, ownership is unclear, documents are missing, or a probate/corporate issue exists, consult a Michigan attorney. A lawyer can help obtain certified records, draft a verified claim, and represent you at a hearing.
Helpful links
- Michigan Legislature (search Michigan Compiled Laws)
- Michigan Courts (court forms and local court information)
- Locate your county register of deeds and sheriff’s office websites for certified copies, forms, and local procedures.
Helpful Hints
- Request certified copies from the county Register of Deeds rather than photocopies.
- Keep originals safe; bring originals to any hearing and submit certified copies for filing.
- Get a title search if chain of title may be contested — it often reveals recorded assignments and liens you did not know about.
- If the owner is deceased, get certified death certificate(s) and probate letters early — these often take weeks to obtain.
- Be ready to show proof of authority (trust certification, corporate resolution, POA) if you act for someone else; some offices require recorded POAs.
- Include a completed IRS W‑9 with your claim so the sheriff or court can issue payment without delay.
- Act quickly. Although timing rules vary by county and by type of sale, delays make locating records and witnesses harder.
- Beware of unsolicited “claims companies.” Always verify a company’s credentials before sharing sensitive documents or paying fees.
Disclaimer: This information explains general Michigan procedures and common documents needed to support a surplus funds claim. It is educational only and is not legal advice. For advice about your specific situation, contact a licensed Michigan attorney.