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How to claim foreclosure surplus funds in Michigan

After a Michigan sheriff's sale under foreclosure by advertisement, any money left over after the mortgage and foreclosure costs are paid stays with the sheriff or other person who made the sale. They must pay it to you on demand, unless someone with a later mortgage or lien files a sworn claim, in which case the money goes to the circuit court clerk and a judge decides. Ask for it in writing as soon as the sale is over.

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Reviewed against Michigan law and official sources on October 12, 2026. General information, not legal advice.

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How to claim surplus funds in Michigan

  1. Who holds the surplus

    Right after the sheriff's sale

    The sheriff or other officer who conducted the sale keeps any surplus left after paying the mortgage and the costs of foreclosure and sale. The sheriff's deed, recorded with the county register of deeds, shows the winning bid, which you can compare with what you owed.

    MCL 600.3252

  2. Make a written demand

    Any time after the sale

    There is no state form. Send the sheriff's office that held the sale a dated, signed letter asking for the surplus, with your current address and proof that you were the mortgagor, and keep a copy. The law says the surplus must be paid to the mortgagor on demand.

    MCL 600.3252

  3. Claims by later lien holders

    If a claim is filed before the money is paid out

    A second mortgage or other lien holder can file a sworn written claim with the person who made the sale. The surplus then goes to the circuit court clerk, the court holds a hearing where everyone can present proof, and the judge orders who gets paid.

    MCL 600.3252

  4. Unclaimed money and fee limits

    Money that goes unclaimed can be reported to the Michigan Department of Treasury's unclaimed property program, where you can claim it yourself. Any agreement to pay someone to recover that property, made within 24 months after the state receives it, cannot be enforced. Michigan sets no percentage cap on these fees, so be careful before signing anything.

    MCL 567.256

  5. Surplus after a property tax foreclosure

    Form 5743 due by July 1 after the foreclosure

    Leftover money from a county tax foreclosure auction follows a separate process with strict deadlines and a notarized Treasury form. See the Michigan property tax foreclosure page.

    MCL 211.78t

What Michigan law says about leftover sale money

Surplus after a mortgage foreclosure sale

If the sale brings in more than the mortgage debt and the foreclosure costs, the sheriff or other person who made the sale must pay the surplus to you on demand. If someone with a later mortgage or lien files a sworn written claim, the money goes to the circuit court clerk and a judge decides who gets it. Ask the sheriff's office that held the sale, in writing, whether there is a surplus.

MCL 600.3252

Common questions in Michigan

Is there a deadline to claim surplus from a Michigan sheriff's sale?

The surplus statute does not set a deadline, but do not wait. A later lien holder can file a claim any time before the money is paid to you, and money that sits unclaimed can be turned over to the state. Send your written demand to the sheriff's office soon after the sale.

What if a second mortgage lender claims my Michigan surplus?

Once a later lien holder files a sworn claim, the sheriff must send the surplus to the circuit court clerk. You can ask the court to take proof, appear at the hearing and challenge the amount claimed. The judge then orders how the money is split.

Can a company charge me to collect my Michigan surplus?

Michigan has no specific cap on fees for collecting foreclosure surplus held by the sheriff. If the money has already gone to the state's unclaimed property program, a fee agreement made within 24 months after that is unenforceable. You can demand the money from the sheriff or claim it from the state yourself at no cost.

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Who to call, and what to do when a sale is scheduled.

Also in Michigan

Property tax foreclosure Claim surplus funds (this page)

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Sources for this page

  1. MCL 211.78a (delinquent taxes; administration fee and interest)
  2. MCL 211.78f (notice before forfeiture)
  3. MCL 211.78g (forfeiture; redemption)
  4. MCL 211.78i (notice of show cause and foreclosure hearings)
  5. MCL 211.78k (foreclosure hearing and judgment)
  6. MCL 211.78m (right of first refusal and auction)
  7. MCL 211.78q (installment plans and tax foreclosure avoidance agreements)
  8. MCL 211.78t (claims for remaining proceeds)
  9. MCL 211.7u (poverty exemption)
  10. MCL 567.256 (agreements to recover unclaimed property)
  11. Michigan Department of Treasury, Property Tax Forfeiture and Foreclosure: Taxpayer Resources
  12. MCL 600.3204, Foreclosure by advertisement; circumstances
  13. MCL 600.3205a to 600.3205d, Repealed
  14. MCL 600.3208, Notice of foreclosure; publication; posting
  15. MCL 600.3212, Notice of foreclosure by advertisement; contents
  16. MCL 600.3220, Sale; adjournment
  17. MCL 600.3238, Inspection of property during redemption
  18. MCL 600.3240, Redemption of premises
  19. MCL 600.3252, Disposition of surplus money
  20. MCL 600.3280, Foreclosure by advertisement; deficiency; defenses
  21. MCL 445.1822, Credit Services Protection Act, definitions
  22. MCL 445.1823, Credit Services Protection Act, prohibited conduct
  23. Michigan Legal Help, Foreclosure and Eviction for Homeowners
  24. MSHDA, Michigan Homeowner Assistance Fund application period to end December 8, 2023
  25. MCL 600.3241, Abandonment; conclusive presumption
  26. MCL 600.3241a, Abandonment of residential property; notice
  27. MCL 600.5714, Summary proceedings to recover possession
  28. MCL 600.5744, Writ of restitution; timing