How to claim foreclosure surplus funds in Minnesota

How to claim surplus funds in Minnesota

1. Sheriff holds the surplus and tells you

   Held through the redemption period

   If the surplus is $100 or more, the sheriff keeps it until your redemption period ends. The sheriff must mail a notice to the property address saying a surplus exists and to call the sheriff's office about how to claim it, along with contact information for the Minnesota Homeownership Center.

   Minn. Stat. § 580.10, subds. 1, 2

2. Use the surplus to redeem

   Any time during your redemption period

   As the owner of record at the time of the sale, you can send the sheriff a written request to apply the surplus toward the amount needed to redeem your home. Only you can use this right; it does not pass to someone who later buys the home from you.

   Minn. Stat. § 580.10, subd. 3

3. Junior creditors must demand in time

   Before the redemption period ends

   A second mortgage or other lien holder of record must demand the surplus during the redemption period, with an affidavit stating what it is owed. If no one redeems, those creditors are paid in order of priority before you.

   Minn. Stat. § 580.10, subd. 1

4. Owner gets the rest

   After the redemption period ends

   What is left goes to the owner of record at the time of the sheriff's sale, or as a court orders. A surplus under $100 can be paid to you by the sheriff without waiting.

   Minn. Stat. § 580.10, subds. 1, 4

5. Competing claims go to court

   If claims conflict or one looks invalid, the sheriff can petition the district court and hold the money until the court rules. You are served with the petition, and even if you do not take part, you do not lose your right to the surplus.

   Minn. Stat. §§ 580.10, subd. 5, 580.28

6. Unclaimed money and fee limits

   Presumed abandoned after 3 years

   Money held by a public officer that stays unclaimed for more than three years is presumed abandoned and goes to the state's unclaimed property program, where you can claim it yourself. It is illegal to charge a fee to locate property within 24 months after it reaches the state, and after that a fee over 10 percent is only valid in a signed written agreement that discloses the property and its value.

   Minn. Stat. §§ 345.38, 345.515

7. Surplus after a tax forfeiture

   Claim within 6 months of the county's notice

   Leftover money after a tax-forfeited home is auctioned is claimed from the county auditor on a state form. See the Minnesota property tax foreclosure page.

   Minn. Stat. § 282.005

What Minnesota law says about leftover sale money

Common questions in Minnesota