Detailed Answer
When a mortgaged property sells at sheriff’s sale in Minnesota for more than the debt and costs, the excess—called “surplus money”—goes to the state’s Department of Management and Budget (BMB). Under Minn. Stat. § 580.23, any person claiming those funds must submit a written claim within statutory deadlines. A former spouse or a survivor (heir or devisee) can assert entitlement under two common scenarios: death of the owner or divorce property division.
1. Death of the Property Owner
When the mortgagor dies, the 180-day deadline to claim surplus funds pauses and restarts upon the later of six months after sale or six months after death. To assert entitlement:
- Obtain a certified copy of the death certificate.
- Provide proof of heirship or devise (e.g., will, probate court order, or affidavit of heirship).
- File a written claim with BMB before the extended deadline. Include your contact details, certificate of sale information, and copies of supporting documents.
- Mail or deliver the claim to:
Department of Management and Budget
Unclaimed Funds Division
400 Centennial Office Building
658 Cedar Street
St. Paul, MN 55155
2. Divorce and Property Settlement
If a divorce judgment awarded a former spouse an interest in the real estate or sale proceeds, the ex-spouse becomes an interested party. To secure surplus funds:
- Review the dissolution decree or property settlement agreement under Minn. Stat. § 518.62. It must explicitly allocate rights to sale proceeds or equity.
- Gather certified copies of the final divorce decree and any qualified domestic relations order (QDRO) or property settlement exhibit.
- File a surplus-funds claim with BMB within 180 days of the sheriff’s sale. Indicate your former name, current address, and reference the case number on the certificate of sale.
- If BMB rejects the claim, you may petition Minnesota district court for relief under the Uniform Unclaimed Property Act procedures.
Helpful Hints
- Mark your calendar. The standard claim window is 180 days from sale. Death extends that by six months after probate.
- Keep all documents certified. Uncertified copies may delay—or doom—your claim.
- Search unclaimed-funds online. If you miss the deadline, funds may transfer to general unclaimed property. Visit the Minnesota Office of the State Treasurer website.
- Confirm your mailing address. BMB sends checks only to verified addresses on file.
- Consult an attorney if creditors or co-owners dispute your claim. A court action may be necessary to resolve competing interests.