How to Pursue Surplus Funds After a Foreclosure in Vermont

Short answer: Determine whether a surplus exists, confirm your legal interest (owner, heir, lienholder, or personal representative), gather supporting documents, then file a motion in the Vermont Superior Court that handled the foreclosure asking the court to determine and release the surplus. Prompt action and proper service on all interested parties are essential.

Detailed answer — step‑by‑step under Vermont law

This section explains what a surplus is, who can claim it, and how to file a motion in Vermont to have the court decide who is entitled to any surplus remaining after a foreclosure sale.

1. What is a “surplus” and who gets it?

When a foreclosed property is sold, the sale proceeds first pay the mortgage or lien being foreclosed, then costs, attorneys’ fees, and any senior lienholders. If sale proceeds exceed all lawful claims and costs, the leftover money is called the surplus (sometimes called excess proceeds). Priority for distribution is determined by the order of recorded liens and Vermont law governing distributions after foreclosure.

Potential claimants include:

The former owner (or the owner’s estate if deceased).
Junior lienholders (e.g., later mortgages or judgment liens) who may have a right to remaining proceeds after senior liens are paid.
Other parties with recorded or enforceable claims against the property.

2. Confirm whether a surplus exists

Get the foreclosure sale paperwork: deed or certificate of sale, sale report, and the foreclosure case file. These are available from the clerk of the Superior Court where the foreclosure case was filed and often from the purchaser or the foreclosing party.
Compare the sale price to the amounts owed (principal, interest, fees, costs, and senior liens). If the sale produced money left after paying all those amounts, a surplus probably exists.
If you cannot find clear accounting, ask the court clerk how to obtain the foreclosure judgment, sale accounting, or a motion for distribution filed in the foreclosure case.

3. Establish your standing to claim the surplus

To ask the court to give you surplus funds you must show a legal interest in the funds:

If your mom is alive and was the owner, she is the primary claimant.
If your mom is deceased, you will usually need to show you are the personal representative (executor/administratrix) or an heir. If no probate has been opened, the court may require appointment of a representative before disbursing funds to the estate.
If you are a creditor or a holder of a recorded junior lien, provide lien documents and proof of priority.

4. Which court and how to file

File your motion in the Vermont Superior Court (Civil Division) that handled the foreclosure case—use the foreclosure case number if you have it. If you do not have a case number, go to the county Superior Court clerk where the property is located and give the property address and parties to locate the file.

Your filing will typically be a motion to determine the right to surplus funds (or a motion for distribution of surplus funds). The motion should ask the court to: (1) determine whether a surplus exists; and (2) enter an order directing payment of the surplus to you or to the person/entity you represent.

5. What to include with the motion

A clear caption listing the foreclosure case number, parties, and property address.
A short statement of facts showing the foreclosure and sale, the sale price, and why you believe a surplus exists.
Documents proving your interest: title documents, death certificate if owner is deceased, letters testamentary or letters of administration (if probate opened), a copy of any will that names you, recorded lien instruments if you are a lienholder.
Copies of the foreclosure sale documents or a request that the court take judicial notice of those filed in the foreclosure case.
An affidavit or declaration from you (or someone with knowledge) under penalty of perjury supporting your factual assertions (identity, relationship to owner, and basis for the claim).
A proposed order the judge can sign awarding the surplus to you or directing distribution through the clerk.

6. Service and notice to interested parties

You must serve the motion and supporting papers on all parties who have an interest in the foreclosure case and other potential claimants—this typically includes the foreclosing lender/plaintiff, the purchaser at the sale, any recorded lienholders, and the former owner (or the owner’s estate representative). Follow Vermont Rules of Civil Procedure for service and proof of service. The court may set a hearing and require notice by mail or other approved method.

7. Probate issues if the owner is deceased

If your mom has died and no personal representative is appointed, the court may require that surplus funds be paid to the estate. You may need to open a probate (estate) matter in the Vermont Probate Division and obtain authority (letters) before the Superior Court will release funds to you. For probate information see the Vermont Judiciary resources at Vermont Judicial Branch and statutes addressing estates at the Vermont Legislature site: https://legislature.vermont.gov/statutes/title/14.

8. Possible outcomes

The court may enter an order directing the clerk or foreclosing party to pay the surplus to the owner, estate, or junior lienholder in the priority set by law.
Other claimants may object; the court will resolve competing claims and may hold a hearing with evidence and testimony.
If no valid claimant is found, the court may order the funds held by the clerk pending further claim or may direct remittance to the state in accordance with unclaimed property laws.

9. Timing and deadlines

Act quickly. Some claims to surplus can be time‑sensitive. While Vermont statutes and court rules set procedural timelines, those deadlines depend on the facts and the case. If your mother recently lost the property through foreclosure, check the foreclosure case file now and consult an attorney if you are unsure about deadlines.

10. Where to find forms and statutes

Vermont Judiciary (court information, clerk contacts, and some forms): https://www.vermontjudiciary.org/
Vermont Statutes (search Title 12 — Courts & Judicial Procedure, Title 14 — Estates & Probate, and Title 27 — Property) for statutes that govern foreclosures, probate, and distributions: https://legislature.vermont.gov/statutes/. Recommended entry points: Title 12, Title 14, Title 27.

Helpful Hints

Start at the county Superior Court clerk’s office where the foreclosure case was filed. Ask for the foreclosure file and any sale accounting already in the record.
If your mom is deceased, obtain a certified copy of the death certificate and check whether a probate estate was opened—if not, you may need to open one to receive estate funds.
Get certified copies of recorded documents from the town clerk or land records office (deed, mortgage, liens). Those records show priorities and who may share in surplus proceeds.
Prepare a clear affidavit explaining your relationship to the owner and why you are entitled to the funds (e.g., you are the personal representative, an heir, or a recorded lienholder).
Serve all known interested parties and file proof of service with the court to avoid delays or dismissal of your motion.
Keep copies of every document you file and receive in the courthouse; create a simple index of the foreclosure case file for reference.
If you are a potential heir but the estate has not been probated, consult probate rules early—probate may be required to collect the surplus for the estate.
Consider hiring an attorney experienced in Vermont foreclosure and probate matters—especially when competing claims or estate issues exist.

Next steps

1) Contact the Superior Court clerk where the property is located and request the foreclosure case file and any sale accounting; 2) collect proof of your status (owner, heir, or lienholder); 3) prepare and file a motion to determine right to surplus funds with supporting affidavit and documents; 4) serve all interested parties and be prepared for a hearing.

Disclaimer: This article explains general principles of Vermont law and common court practice but is not legal advice. Laws and procedures change, and every case is different. For advice tailored to your situation, contact a licensed Vermont attorney or the court clerk for procedural guidance.