Detailed answer — step‑by‑step under South Dakota law

1. Confirm whether surplus funds exist and who holds them

   Start by locating the foreclosure sale record. County sheriff or the trustee who conducted the sale will have a sale report and a certificate of sale. If the sale brought in more than the sums due to the mortgage and other lienholders, the surplus is usually retained by the sheriff, trustee, or clerk of court pending distribution. Contact the county sheriff’s office, the circuit court clerk in the county where the real property is located, or the trustee identified in the foreclosure paperwork to learn whether surplus funds remain and get instructions for claiming them.

2. Understand who is legally entitled to the surplus

   When the property owner is deceased and no probate has been opened, the surplus is an asset of the decedent’s estate. Under South Dakota probate rules (Title 29A), estate property passes to heirs or beneficiaries through probate or an available small‑estate procedure. The person (or persons) entitled to the surplus will be the decedent’s successor(s) under intestate succession or under the decedent’s will if one exists.

   You can review South Dakota’s probate laws in Title 29A of the South Dakota Codified Laws for rules on who inherits and how to distribute estate property: South Dakota Codified Laws – Title 29A (Probate).

3. Decide whether you must open probate or use a small‑estate method

   If there is no probate, you will typically need one of two approaches to claim the surplus:

   • Open a probate estate (formal administration) in the county where the decedent lived or where the property is located. Probate establishes an estate representative (personal representative) who can collect assets, pay valid creditors, and distribute remaining property, including surplus sale proceeds.
   • If the estate is small and qualifies under South Dakota procedures, use the non‑administration or small‑estate affidavit process to collect assets without full administration. South Dakota’s Uniform Probate Code (Title 29A) contains the applicable procedures and thresholds. Check local court rules or the Unified Judicial System for small‑estate forms and requirements: South Dakota Unified Judicial System.

   Which route is appropriate depends on the size of the estate, the existence of creditors, whether multiple heirs dispute distribution, and the county court’s rules.

4. Gather proof of heirship and required documents

   Common documents claimants need:

   • Death certificate for the decedent.
   • Proof of relationship (birth certificates, marriage certificate, family records) or a signed heirship affidavit.
   • Front‑page copy of the deed showing decedent’s ownership prior to foreclosure (if available).
   • Copies of foreclosure sale records, sheriff’s certificate of sale, and documentation from the county official showing the amount of surplus.
   • Any will or estate planning documents if one exists.

   An affidavit of heirship (sometimes used when heirs are known and agree) may be accepted by the county official or the court; however, some offices insist on an order from the probate court or appointment of a personal representative before releasing funds.

5. File the correct claim or petition

   Depending on who holds the surplus and local practice, you may be able to:

   • Submit a written claim directly to the sheriff, trustee, or clerk with supporting documents (death certificate, proof of heirship, affidavit) demanding distribution.
   • File a petition in circuit court asking the court to order distribution of the surplus to you as heir(s) or to appoint a personal representative to handle the asset as part of the estate. The court can resolve competing claims.

   If multiple claimants appear (disagreeing heirs, creditors, or prior owners), the county may require a court order to distribute funds. Courts routinely decide ownership of surplus sale proceeds in a probate or a separate interpleader action.

6. Expect notice to creditors and possible withholding for claims

   Because surplus funds are estate property, creditors may have claims. A court‑authorized distribution follows payment of valid claims and administrative costs. If you open probate, follow South Dakota’s notice requirements so creditors can present claims. See general probate rules in Title 29A: SDCL Title 29A.

7. Final steps — distribution and closing the matter

   Once the court or county official clears distribution, the surplus will be paid to the personal representative or to the heir(s) according to the court order or agreement. Keep careful records, because the county or court may require proof that funds were distributed properly to close the file.

Common obstacles and how to handle them

• Competing heirs: If heirs disagree, file a probate petition or a declaratory petition asking the court to determine rightful recipients.
• Unknown or missing heirs: The court may require a more formal probate with public notice so unknown creditors or heirs can come forward.
• County insists on court order: Many counties require a probate court order before releasing surplus funds. Be prepared to open probate if requested.
• Time limits or statutes of limitation: Act promptly—delays can complicate recovery. Even if there is no strict deadline, earlier action reduces risk of claims or loss of documents.

Key South Dakota resources

• South Dakota Codified Laws — Title 29A (Probate): https://sdlegislature.gov/Statutes/Codified_Laws/Default.aspx?title=29A
• South Dakota Unified Judicial System (court forms and local procedures): https://ujs.sd.gov
• Local county sheriff’s office or circuit court clerk (contact the county where the property was located for sale records and procedures)

Practical example (hypothetical): Suppose your parent owned a house in Minnehaha County that was foreclosed and sold at sheriff sale. The sale produced $10,000 more than the mortgage/lien balance. The sheriff holds the $10,000. You contact the Minnehaha County Sheriff’s Office and the circuit court clerk. Because no probate exists, the sheriff says they will only release funds on order of the circuit court or to a filed personal representative. You can either open a small estate case if the estate qualifies or petition the circuit court to appoint a personal representative and order distribution of the $10,000 to the heirs after any legitimate creditor claims.

When to get a lawyer

Consider consulting a South Dakota probate or real estate attorney if:

• Multiple heirs dispute who is entitled to the surplus;
• There are significant creditor claims or potential taxes attached to the funds;
• The county refuses to release funds without a court order or the matter becomes procedurally complex;
• You prefer to have an attorney prepare the probate or petition paperwork to avoid delays and mistakes.

Short checklist

1. Identify the holder of surplus funds (sheriff, trustee, clerk).
2. Get certified copies of the death certificate and foreclosure sale documents.
3. Gather proof of heirship or a will.
4. Contact county officials about their requirements to release surplus funds.
5. Open probate or use small‑estate procedures if required.
6. File a claim/petition and follow court instructions.

Disclaimer: This article explains general South Dakota procedures and is for educational purposes only. It is not legal advice. For advice about your specific situation, consult a licensed South Dakota attorney.

Helpful Hints

• Act quickly: locate sale records soon after learning of the foreclosure to avoid lost or hard‑to‑find records.
• Start at the county level: the county sheriff or circuit court clerk is often the quickest source of information about surplus funds.
• Get certified documents: official certified death certificates, sale records, and recorded deeds make claims smoother.
• Use an heirship affidavit only when heirs agree; otherwise, use the probate process to avoid later disputes.
• Keep copies of everything: submission receipts, emails, and proofs of service in case disputes arise.
• Ask about fees: the county or court may charge administrative fees or require bond for a personal representative.
• Consider limited legal help: many attorneys will help with a single petition or form for a fixed fee if you do most of the legwork.