If a foreclosed property was owned by someone who passed away, any surplus funds belong to their estate.
In that case, surviving heirs may still recover the money, but the process is more complex:
- Probate must be opened in most cases to appoint a legal representative.
- The court will require documents showing the family’s legal right to the funds.
- If there are multiple heirs, the funds may be split accordingly.
If probate is skipped, the court may reject the surplus claim entirely—even if relatives are entitled to the money.
