Detailed answer — how Michigan law treats survivorship rights and surplus funds

Short answer: Maybe — but it depends on timing, the exact title form on the deed, and whether other liens or priorities exist. A right of survivorship (for example, joint tenancy with right of survivorship or tenancy by the entirety for married couples) can affect who owns the property at a particular moment. Who actually owns the property (and any legal interest) at the time of the sheriff’s sale and when surplus funds are distributed typically controls who is entitled to surplus money.

Key legal principles (plain language)

• Title and timing matter. If the survivorship right already operated so that the survivor owned the property before the foreclosure sale or before the lender’s interest was enforced, the survivor may be an owner entitled to claim surplus funds.
• If the foreclosure sale occurs while someone else still holds the legal title (even if a survivorship right could later transfer title on death), the foreclosure purchaser and lienholders may extinguish the prior owner’s title. In that case, a later assertion of survivorship usually will not create a new claim to surplus funds from that sale.
• Priority of claims controls distribution. Mortgagees, junior lienholders, tax liens, and certain statutory claimants may have priority ahead of an owner’s claim to surplus funds. You must defeat those priorities or show how they were satisfied before you get any surplus.
• Claims must be proved. To obtain surplus funds you must present documentary proof of your legal interest: recorded deed, death certificate (if survivorship arose by death), probate or other transfer documents, and lien/encumbrance records.

How this plays out in common scenarios

Here are a few short hypotheticals to show how the law typically works in Michigan.

1. Survivorship completed before foreclosure sale: A and B hold title as joint tenants with right of survivorship. A dies before the lender forecloses. Title vests in B by survivorship before the sheriff’s sale. The property is later sold at sheriff’s sale and some surplus remains after paying lienholders. Because B was the sole owner at the time of sale, B can generally claim the owner’s share of any surplus, subject to other lien priorities.
2. Foreclosure sale occurs before survivorship takes effect: A and B hold title as joint tenants. The lender forecloses and the property sells at sheriff’s sale while both A and B are alive or while the record still shows both as owners. The sheriff’s sale usually cuts off the prior owners’ title; a later death that would have triggered survivorship does not retroactively give the survivor an interest in surplus from that sale.
3. Tenancy by the entirety (married couple) and mortgage by one spouse: Michigan recognizes tenancy by the entirety for married couples. If only one spouse grants a mortgage, whether the mortgage encumbers the entire-tenancy property depends on facts and how the mortgage is executed. Foreclosure and surplus distribution can be complicated; surviving spouse rights may be stronger when title is held as tenancy by entirety, but creditor priority and whether the creditor had an enforceable lien still matter.

Practical steps to assert a survivorship claim to surplus funds in Michigan

1. Identify the precise owner of record on the date the sheriff’s sale occurred. Obtain the county register of deeds chain of title and the sale paperwork.
2. Gather documentary proof: recorded deed showing the right of survivorship, death certificate (if claiming survivorship by death), any probate filings, marriage certificate (if claiming tenancy by the entirety), and payoff records showing how liens were satisfied.
3. Check for other liens and priorities: tax liens, judgment liens, homestead exemptions, or subordinate mortgages can reduce or eliminate what is left as surplus.
4. File a formal claim with the sheriff or the court handling distribution. In Michigan foreclosures, surplus distribution procedures follow the court’s order and applicable foreclosure statutes and court rules. You will usually need to file paperwork and attach your proofs. If the sheriff has already deposited funds with the court, you may need to move the court for distribution.
5. If the claim is contested, you may have to file a petitionor motion asking the court to determine entitlement and distribute the surplus. That may require a hearing and evidence (deeds, probate records, expert testimony about title, etc.).

Where to look in Michigan law

Michigan’s foreclosure and sheriff’s sale rules appear in the Michigan Compiled Laws under the judicial and real property chapters (foreclosure procedures commonly fall in MCL 600.3201 et seq.). You can read the foreclosure statutes and related provisions on the Michigan Legislature website: https://www.legislature.mi.gov. Look under the Michigan Compiled Laws (search terms: “foreclosure”, “sheriff sale”, “surplus money”).

Important limitations and common pitfalls

• If your deed was recorded after the lender’s lien or after the sheriff’s sale, you generally cannot leapfrog earlier-recorded interests.
• Some survivorship arrangements (e.g., informal oral agreements) do not create legal title — you need proper recorded documents.
• Death certificates and probate records can be required to prove survivorship; delays or missing documents slow claims.
• Timing is crucial: courts look to who held title when the enforceable event (sale or levy) occurred.

Bottom line: A recorded right of survivorship can give you a valid ownership claim that entitles you to surplus funds — but only if that survivorship right operated so that you were the record owner at the relevant time and there are no superior lienholders or legal reasons to deny the claim. You must prove your claim with recorded documents and, if necessary, bring the claim to the court or sheriff handling the surplus distribution.

This is a general overview, not legal advice. For help applying these rules to your facts, consult a Michigan attorney.

Helpful Hints — practical checklist to pursue a survivorship claim to surplus funds in Michigan

1. Get a certified copy of the recorded deed from the county register of deeds.
2. Obtain the sheriff’s sale record and the court’s order approving the sheriff’s sale (look for the case number and distribution order).
3. If claiming survivorship by death, get an official death certificate and any recorded affidavit of survivorship if one exists.
4. Search for recorded mortgages, liens, and judgments on the property for the period before sale; they can reduce or eliminate surplus.
5. Contact the county sheriff’s office or the court clerk where the sale took place to learn the exact procedure and deadlines for claiming surplus funds.
6. Prepare a written claim or petition with copies of all documents; serve interested parties as required by court rules.
7. If a dispute is likely, consider hiring a Michigan real property attorney early — contested surplus distributions often require motions, hearings, and clear title evidence.
8. Act quickly — statutes of limitation, redemption periods, and local procedures can impose strict deadlines.

Helpful resources: Michigan Legislature (statutes) — https://www.legislature.mi.gov; Michigan Courts or county clerk/sheriff websites for local forms and procedures.

Disclaimer: I am not a lawyer. This article explains general Michigan legal concepts to help you understand when a right of survivorship might affect claims to foreclosure surplus funds. This is not legal advice. For guidance about your specific situation, contact a licensed Michigan attorney.