1. Detailed Answer

When a property in Washington state sells at a trustee’s foreclosure sale for more than the total debt, the excess proceeds become surplus funds. State law governs how former spouses and survivors—heirs or personal representatives—can claim these funds.

a. How Surplus Funds Arise

Under RCW 61.24.100, a trustee conducts a nonjudicial foreclosure. If the sale price exceeds the outstanding obligations (lien balance, trustee fees, and sale costs), the trustee deposits the remainder with the county treasurer as surplus. The treasurer holds those funds for claimants for up to one year.

Link to statute: RCW 61.24.100.

b. Claiming as a Former Spouse After Divorce

1. Review Your Divorce Decree. Confirm the property settlement or decree under RCW 26.09.080 awards you an interest in sale proceeds or residual value.
2. Prepare Proof. Obtain a certified copy of the final decree or division order and a certified foreclosure sale notice. Include photo ID and a copy of your Social Security number for verification.
3. File a Surplus Funds Claim. Within one year of the sale date, submit a written claim to the county treasurer where the property sits. Attach your decree, proof of identity, and any lien documentation.
4. Follow Up. The treasurer reviews your claim, notifies junior lienholders, and disburses funds according to priority. If contested, parties may petition the superior court for resolution.

c. Claiming as a Survivor After Death

1. Determine Your Status. If you are an heir or the personal representative named in a will, you qualify. In intestate cases, heirs follow the order under RCW 11.04.015.
2. Open a Probate or Use Small Estate Procedures. For estates under $100,000, you may file an Affidavit of Succession under RCW 11.62.010. For larger estates, petition for probate to appoint a personal representative.
3. Gather Documents. Collect the death certificate, letters testamentary (or succession affidavit), foreclosure sale notice, and trustee’s surplus notification.
4. Submit Your Claim. Present your claim to the county treasurer within one year of sale. Attach probate or succession paperwork and proof of your relationship or appointment.
5. Resolve Competing Claims. If other lienholders or heirs file claims, the treasurer may require a court order. Petition the superior court in the county of sale to adjudicate any disputes.

Failing to file within one year generally transfers entitlement to the senior lienholder. See RCW 61.24.145 for distribution if no timely claim arises.

2. Helpful Hints

• Act Quickly: Washington law gives only one year from the sale date to claim surplus funds.
• Get Certified Documents: Courts and treasurers require certified copies of decrees, death certificates, and letters testamentary.
• Verify County Rules: Counties may have specific forms or filing fees. Check the local treasurer’s website.
• Include Contact Info: Provide current mailing address and phone number to receive notifications.
• Consult a Probate or Family Law Attorney: Even though you can file yourself, an attorney can help resolve disputes and ensure proper filings.
• Keep Copies: Retain duplicates of all submissions and certified mail receipts.