How to Claim Surplus Funds After a Tax Foreclosure Sale in Nebraska

Disclaimer: This article explains general Nebraska law and common procedures. It is educational only and not legal advice. For help with a specific case, consult a licensed Nebraska attorney.

Detailed answer — who gets surplus funds and how to claim them

When a county conducts a tax foreclosure sale, the county first uses the sale proceeds to pay the delinquent taxes, interest, penalties, and sale costs. Any money left over after those claims is called the surplus (sometimes called an overage). In Nebraska, the rules that govern property tax collection and tax sales appear in Neb. Rev. Stat. Chapter 77. See Neb. Rev. Stat. ch. 77: https://nebraskalegislature.gov/laws/statutes.php?chapter=77.

Typical priorities and claimants:

Former owner(s) of record or their heirs: Often the first party to seek the surplus is the taxed property’s owner before the sale. If the owner is deceased, the owner’s estate or heirs may have a right to the surplus, but they must show legal authority to receive it.
Secured lienholders: Depending on the timing and whether liens were preserved, mortgagees or other lienholders who had an interest in the property may have claims to proceeds.
Other parties with recorded interests or court-ordered claims: If a court or statute gives another party a right, the county will need to resolve competing claims before paying out the surplus.

Step-by-step: How to claim surplus funds in Nebraska

Confirm there is a surplus. Contact the county treasurer or county clerk where the property was located. Ask for the tax sale file, the sale ledger, and the accounting that shows sale price, taxes, costs, and any surplus balance. Many counties post sale results online.
Identify who holds the legal right to the funds. In most cases, the former owner (or that person’s estate/heirs) can claim surplus funds. But recorded lienholders or parties with court-ordered rights can also have priority. The county should be able to tell you if anyone else has submitted a claim.
Gather proof of identity and entitlement. Typical documents counties ask for include:
- Government photo ID for the claimant.
- Proof of former ownership (deed, tax records, property record card).
- If the owner is deceased: death certificate plus proof of authority to act for the estate (letters testamentary/letters of administration) or a small-estate affidavit if permitted.
- If you are an heir but there is no probate: affidavit of heirship, family tree documents, and any court documents proving your right to inherit.
- For lienholders: recorded mortgage, assignment, or release documents showing the lienholder’s interest.
File a written claim with the county. Submit a formal written claim to the county treasurer or clerk per the county’s instructions. Include the supporting documents listed above and a clear statement requesting payment of the surplus. Keep copies and get a dated receipt.
Wait for county review and distribution. The county must clear competing claims, validate documents, and follow statutory distribution rules before releasing funds. This may take weeks to months, particularly if claims conflict.
If the county denies the claim or there is a dispute, consider court action. If the county refuses payment or a competing claimant arises, the usual remedy is to file a civil action in the county court to determine entitlement to the funds and to obtain a court order directing the county to pay the claimant. You will likely need an attorney for contested cases.
Unclaimed funds and the state unclaimed property program. If surplus funds remain unclaimed for a statutory period, the county may turn them over to the Nebraska State Treasurer’s Unclaimed Property program. Check the State Treasurer’s site for claims: https://treasurer.nebraska.gov/ucp/.

Special situation: the owner died before or after the tax sale

If your mother (the owner) has died, additional steps commonly apply:

If the estate has an open probate or administration, the personal representative (executor/administrator) should claim the surplus on behalf of the estate using letters testamentary/administration and a death certificate.
If no formal probate was opened, the county may accept a small-estate affidavit or affidavit of heirship depending on the county’s rules and the amount at issue. Nebraska probate statutes and procedures appear in Neb. Rev. Stat. Chapter 30: https://nebraskalegislature.gov/laws/statutes.php?chapter=30.
If heirs disagree about entitlement, a probate or civil court proceeding can resolve who is entitled to the surplus.

When to get a lawyer

Hire a Nebraska attorney if:

Competing claims exist or the county denies payment.
The estate is involved and probate issues are unsettled.
You need help preparing documents to prove your claim or filing a court action to recover funds.

Helpful Hints

Act quickly. Start by contacting the county treasurer or clerk as soon as you learn of the tax sale or possible surplus.
Get the sale accounting in writing. Ask the county to provide a line-item accounting showing sale price, taxes, fees, and the remaining surplus amount.
Keep originals and certified copies of key documents: deed, death certificate, probate letters, and ID. Counties often require certified copies for proof.
If you are an heir and no probate exists, check whether a small-estate procedure or affidavit can work to collect the funds.
Check the Nebraska State Treasurer’s unclaimed property site if the county says funds were turned over to the state: https://treasurer.nebraska.gov/ucp/.
Document all communications with the county in writing and keep records of mailed or delivered claim forms and receipts.
If multiple people claim the funds, consider mediation or a court order to avoid delays and conflicts.

Key links and statutes

Nebraska property tax statutes (chapter on property taxation and tax sales): Neb. Rev. Stat. Chapter 77 — https://nebraskalegislature.gov/laws/statutes.php?chapter=77
Nebraska probate statutes (estate administration and letters): Neb. Rev. Stat. Chapter 30 — https://nebraskalegislature.gov/laws/statutes.php?chapter=30
Nebraska State Treasurer — Unclaimed Property (search or claim unclaimed funds): https://treasurer.nebraska.gov/ucp/

If you want, tell me the county where the property was located and whether your mother’s estate has opened probate. With that, I can list the specific county treasurer contact, local forms to request, and the most likely documents you will need.