Excess proceeds from trustee's sale
Introduction
When real property is sold at a trustee's sale (such as in the case of a mortgage foreclosure), the property might be sold for more than was owed. If this happens, the trustee may deposit the excess proceeds with the district court in which the sale took place and leave it to the court to decide who is entitled to those funds.
The trustee must file an Affidavit of Deposit with the clerk, which explains why the money is being deposited and includes a list of all people who might have a claim to that money, along with their known addresses.
Claims on the excess proceeds
The clerk of court will notify the listed people within 15 days of receiving the Affidavit of Deposit to alert them that they might have an interest in those funds.
If those who were notified want to ask for some or all of the excess proceeds, they must file a Petition for Adjudication of Priority to Funds on Trustee's Sale with the district court in order to ask a judge to decide whether they can get some or all of the money.
The petitioner must also send notice to all other people listed as claimants, and tell them that they have 60 days to respond to their petition.
If no one responds to the petition or files a counter-petition within that time, the court will order that the requested amount of the excess funds be given to the petitioner. No hearing is required.
If someone does respond to the petition or files a counter-petition within that time, the court will notify the claimants and hold a hearing within 20 days to determine who has priority to the funds.
Once the court enters an order, all other claims are barred.
Fees
The party depositing funds with the court must pay a filing fee according to the schedule based on the amount deposited.
A claimant may file a petition for adjudication of priority of funds if the claimant pays a $50 filing fee to the court clerk.
A counter-petitioner must pay the filing fee for a counterclaim according to the schedule based on the amount claimed.
See the Filing/Record Fees page for a list of all filing fees.
A party who cannot afford to pay the filing fee can ask the court to consider waiving the fees. See the Fees and Fee Waivers page for more information and forms.
Forms
Some forms may not apply in all cases. Use the Checklist to help you understand and complete the forms. The Checklist is not filed with the court or served on the other party.
Forms to petition the court
Forms to counter-petition the court