Claiming Foreclosure Surplus Funds in New Hampshire

Detailed answer — step-by-step process

1) Confirm there truly is a surplus and find the custodian of the funds

Start by obtaining the foreclosure sale paperwork. Contact the trustee, the law firm that handled the foreclosure, or the sheriff’s office that conducted the sale and ask for the sale report and accounting that show the sale price, payoff amounts, costs, and any surplus. The sale record will tell you whether a surplus exists and who is holding the funds.

2) Understand who is legally entitled to the surplus

Under New Hampshire law the surplus proceeds are part of the decedent’s property and must be distributed to the decedent’s estate and then to whoever is entitled under the decedent’s will or, if there is no will, under the state intestacy rules. If no probate has ever been opened, the surplus cannot generally be paid to a claimant unless the claimant proves entitlement — usually by providing probate letters or alternative proof of heirship acceptable to the holder of the funds or to the probate court. See New Hampshire statutes addressing mortgages/foreclosure and probate procedures (New Hampshire Revised Statutes). For access to the RSA library, start here: https://www.gencourt.state.nh.us/rsa/html/

3) Gather the documents you will need

• Death certificate for the decedent.
• Foreclosure sale documents showing the surplus (sale report, docket entries, accounting).
• Proof of your relationship to the decedent (birth certificate, beneficiary designation, family records) or the decedent’s will (if any).
• Photo ID for the claimant(s).
• Any prior probate paperwork (if a probate was attempted) or an affidavit of heirship when available.

4) Try an administrative claim first

If the trustee/sheriff or law firm holds the surplus, they may accept a claim package: death certificate, proof of relationship or heirship, and an affidavit signed by heirs. Some holders will release small amounts on presentation of clear proof of entitlement; others will only release funds to an appointed personal representative or after a court order.

5) If the holder will not release the funds, open probate or seek a court order

Because the surplus belongs to the decedent’s estate, you will commonly need one of the following:

1. Appointment of a personal representative (executor or administrator) by the county probate court. The personal representative can present letters of appointment to the holder and collect the surplus on behalf of the estate.
2. If the estate qualifies as a small estate under NH procedure, collection may be possible using an affidavit or summary administration process available through the probate court. The New Hampshire courts maintain probate information and forms here: https://www.courts.state.nh.us/probate/ and forms here: https://www.courts.state.nh.us/forms/
3. If heirs disagree about entitlement or if the holder refuses payment, a claimant may need to file a claim in the county probate court or a civil action to establish entitlement and obtain a court order directing distribution of the surplus.

6) Consider unclaimed property rules if the funds sit unpaid

If surplus funds remain unpaid for a long time, they may eventually be handled under state unclaimed property or escheat laws — meaning they could be transferred to the state treasury. If you cannot locate the funds through the foreclosure holder or probate, check New Hampshire unclaimed property resources and notify the probate court promptly. New Hampshire Treasury unclaimed property information: https://www.nh.gov/treasury/

7) Deadlines and timing

Act promptly. Time limits to claim surplus funds, to open probate, or to bring court actions can vary by circumstance and by county. There is no one-size-fits-all deadline; delays make recovery harder and can lead to the funds being transferred or to disputes among heirs.

8) When to hire a lawyer

If the holder refuses to pay, if heirs disagree, if the estate has significant assets or complex claims, or if the foreclosure documents are contested, consult a New Hampshire probate or real estate attorney. An attorney can prepare a petition for appointment, negotiate a negotiated claim with the trustee, or bring a civil or probate action to compel distribution.

Practical examples (hypothetical)

Example 1 — Simple claim: A homeowner died owning title in her name. Foreclosure sale generated $10,000 surplus. Daughter presents death certificate, state ID, and an affidavit of heirship to the foreclosing trustee; trustee checks and pays the daughter after confirming there is no probate on file.

Example 2 — Probate required: A homeowner died leaving multiple children. Foreclosure generated $100,000 in surplus. The sheriff’s office refuses to pay until a court appoints an administrator because multiple heirs claim different shares. One child files for appointment as administrator in the county probate court, obtains letters of administration, and collects the surplus for distribution under probate rules.

Helpful Hints

• Start by requesting the foreclosure accounting from the trustee, foreclosure attorney, or sheriff. That document shows whether a surplus exists and who is holding it.
• Bring certified copies of the death certificate, photo ID, and documents showing your relationship to the decedent when you submit a claim.
• Contact the county probate court where the decedent lived for guidance about whether a small estate affidavit or full administration is required.
• Use the New Hampshire Judicial Branch probate pages for local forms and filing instructions: https://www.courts.state.nh.us/probate/
• If substantial funds are at stake, or if the holder refuses to release funds, consult a New Hampshire probate or real estate attorney. A lawyer can file the necessary petition, obtain letters of administration, or litigate entitlement.
• Keep detailed records of all communications and copies of every document you submit or receive.