Detailed Answer — Proving ownership for a surplus funds claim in Tennessee
Quick overview: After a foreclosure or sheriff/trustee sale, “surplus funds” (also called overage or excess proceeds) are the money left after the sale pays off all liens and costs. To collect those funds you must prove you are the lawful owner or otherwise entitled to the money. Tennessee law and local county procedures control how to file a claim; confirm requirements with the county where the sale occurred and review the Tennessee Code at the state website: https://www.capitol.tn.gov/ and the Tennessee courts site: https://www.tncourts.gov/.
Who can claim surplus funds?
Potential claimants include the former property owner(s), junior lienholders who were not paid in full, heirs or beneficiaries of a deceased owner, trustees, the bankruptcy trustee (if bankruptcy was pending), or another party with a recorded assignment or valid legal right to the funds.
Core documents you will typically need
Counties vary, but most will require a combination of documentation showing both identity and legal entitlement to the proceeds. Collect and prepare certified or recorded copies when possible.
- Proof of ownership of the property
- Recorded deed showing ownership (copy from the county Register of Deeds)
- Title report or title insurance policy showing owner of record
- Foreclosure / sale records
- Copy of the foreclosure judgment or order (for judicial foreclosures)
- Certificate of sale, sheriff or trustee’s return, or notice of sale showing there were surplus funds
- Distribution sheet or clerk’s report listing surplus amount (if available)
- Identity and tax/payment records
- Government photo ID for the claimant (driver’s license, passport)
- Social Security number or taxpayer ID for issuing payment (often a W-9 is required)
- Proof of current address (utility bill, bank statement)
- If the owner is deceased
- Death certificate
- Letters testamentary or letters of administration issued by probate court, or a small-estate affidavit if allowed under Tennessee law
- Affidavit of heirship or court order assigning funds to heirs
- If the claimant is acting for someone else
- Durable power of attorney (properly executed and, if required, recorded)
- Corporate resolution, articles of incorporation, certificate of good standing and government ID for officers (for companies)
- Trust agreement and trustee certification if property was held in a trust
- If you claim by assignment or purchase
- Recorded assignment(s) of the mortgage, deed of trust, or rights to surplus
- Chain of title showing transfers and authority to collect proceeds
- If bankruptcy or insolvency is involved
- Bankruptcy discharge, closing papers, or trustee authorization showing whether the bankruptcy estate still controls surplus proceeds
How the county usually wants the claim presented
Most counties require a written claim form or affidavit, signed and notarized, and supported by copies of the documents above. Procedures differ by county office (clerk, register, trustee, or sheriff) and by whether the sale was judicial or a trustee’s sale. Expect to attach certified copies of recorded documents when available and to provide identification and a completed W-9 for disbursement.
Steps to get the documents you need
- Contact the county Register of Deeds (or Recorder) where the property is located to obtain certified copies of the deed, recorded assignments, and the sale record.
- Contact the sheriff or trustee who conducted the sale for the certificate of sale, sale accounting, and instructions for filing a claim for surplus funds.
- If the owner is deceased, contact the probate court for required probate documentation (letters, small-estate procedures).
- Get identity documents and W-9 ready for payment processing.
- If you cannot find records or chain of title is unclear, consider ordering a title search or contacting a title company.
Common complications and how to handle them
- Multiple claimants: If several people claim the same surplus, the county may hold funds until a court resolves competing claims. Provide clear, recorded priority documents (deeds, assignments, probates).
- Missing or destroyed records: Obtain certified copies or an indexed abstract from the Register of Deeds; if records are unclear, a title examiner or attorney can help establish ownership.
- Agent or third‑party claims: Make sure agency or assignment documents are recorded and show authority to collect funds.
- Bankruptcy involvement: Confirm with the bankruptcy court whether proceeds belong to the bankruptcy estate before claiming.
Where to confirm Tennessee-specific rules
Tennessee statutes and court rules govern foreclosure sales and distributions; local county offices implement the claim procedures. Visit the official Tennessee Code and court resources to research applicable statutes and local guidance: Tennessee Code (capitol.tn.gov) and Tennessee Courts (tncourts.gov). For the exact steps and forms, call or visit the county Register of Deeds, trustee, or clerk in the county where the sale occurred.
When to consult an attorney: If ownership is disputed, the title is unclear, multiple claimants exist, a probate or bankruptcy estate is involved, or the county refuses to disburse funds without court action, speak with an attorney experienced in Tennessee real property and foreclosure matters.
Disclaimer: This article is for general information only and is not legal advice. It does not create an attorney-client relationship. For legal advice about your specific situation, consult a licensed Tennessee attorney.
Helpful Hints
- Start early. Surplus claims can be time-sensitive; gather documents and contact county offices as soon as you learn of surplus funds.
- Get certified or recorded copies. Counties prefer certified copies from the Register of Deeds rather than uncertified photocopies.
- Bring ID and a W-9. Most counties require a government ID and a completed W-9 before issuing funds.
- If the owner has died, get the death certificate and probate papers first to avoid delays.
- Record assignments promptly. If you acquired rights to the surplus, record the assignment so the county sees a clear, public chain of title.
- Document chain of title. If multiple transfers occurred, assemble all recorded deeds, assignments, and reconveyances so the county can trace who is entitled to the money.
- Talk to the sale officer. The sheriff or trustee who handled the sale often provides the fastest guidance about filing forms and deadlines.
- When in doubt, consult an attorney. An attorney can prepare affidavits, negotiate multiple-claimant disputes, or file a court petition if needed.