How to Claim Your Surplus Funds in Michigan: Step-by-Step Guide

If your home in Michigan was foreclosed and sold for more than what you owed, you may be entitled to surplus funds—the extra money left over after debts are paid. Thanks to recent legal changes, including the Michigan Supreme Court’s ruling in Rafaeli v. Oakland County and the U.S. Supreme Court’s Tyler v. Hennepin County decision, homeowners now have stronger protections when it comes to recovering these funds.

But how do you actually claim your money? Here’s a step-by-step guide to help you navigate the process in Michigan.

Step 1: Confirm That Surplus Funds Exist

After a foreclosure, check with the county treasurer’s office or the court handling the case to determine if surplus funds were generated. Not every foreclosure results in extra funds—it only happens when the property sells for more than the amount owed.

Step 2: Determine If You Qualify

The former property owner is usually first in line to claim surplus funds. However, heirs or estate representatives may also qualify if the homeowner has passed away. Keep in mind, creditors and lienholders may also have claims, so eligibility must be carefully reviewed.

Step 3: File Your Claim Before the Deadline

Michigan law sets strict timelines for claiming surplus funds. If you miss the deadline, the money may be transferred to the state as unclaimed property, and you could lose your right to recover it. Acting quickly is essential.

Step 4: Submit the Required Documentation

You’ll typically need:

Proof of ownership (such as the deed).
Government-issued ID.
Foreclosure and sale records.
If you’re an heir, estate or probate documents may also be required.

Step 5: Wait for Review and Payment

Once your claim is filed, the county or court will review your documentation. If approved, you’ll receive a check for your share of the surplus funds.

How Surplus Refund LLC Can Help

The process of claiming surplus funds in Michigan can be confusing and stressful. Many homeowners miss out because of paperwork errors, missed deadlines, or legal disputes. At Surplus Refund LLC, we make the process easier by: