Montana at a glance
Checked against the sources cited, 2026-09-19
| Topic | What the law says, and where it says it |
|---|---|
| How foreclosure works here | Montana allows both. A trust indenture under the Small Tract Financing Act (property of 40 acres or less) can be foreclosed out of court by a trustee's advertisement and sale or, if the lender chooses, through a court case like a mortgage. A traditional mortgage is foreclosed by a lawsuit in court. Mont. Code Ann. §71-1-304(3); §71-1-222 Show the source textmay be foreclosed by advertisement and sale in the manner provided in this part or, at the option of the beneficiary, by judicial procedure as provided by law for the foreclosure of mortgages on real property |
| Who holds foreclosure surplus | After a trustee's sale, the trustee pays the sale costs and the secured debt, then must deposit any surplus funds with the county clerk and recorder, who passes them to the county treasurer, and must mail notice of the surplus to everyone who was sent the sale notice. To be paid, a claimant files a petition in the district court of that county; the court decides the order of priority and orders the county treasurer to pay. After a court (judicial) foreclosure, the court directs payment of surplus money to the person entitled to it. Mont. Code Ann. §71-1-316; §71-1-225 Show the source textA party seeking disbursement of the surplus funds shall file a petition to request an order for disbursement in the district court for the county in which the surplus funds are deposited. |
| Tax sale excess proceeds | Montana is a tax lien state. The county attaches a tax lien that can be assigned to an investor, and the owner can redeem until the first working day in August three years after the lien attached (two years for certain vacant subdivided lots). For a home occupied by its owner, a lien holder who wants a tax deed has to apply for one, and the county treasurer then sells the property at public auction; half of the assessed (or appraised) value of the land and dwelling is built into the opening bid and, with anything bid above the opening bid, counts as surplus funds. The county treasurer must pay those surplus funds to the legal titleholder of record within 30 days of being paid by the buyer. Mont. Code Ann. §15-18-221(3); §15-18-220(4); §15-18-219; §15-18-111 Show the source textWithin 30 days of receiving payment from the purchaser of the tax deed, the county treasurer shall distribute surplus funds to the legal titleholder of record. |
| Redemption after the sale | There is no right to redeem after a trustee's sale under a Small Tract Financing Act trust indenture. After a court-ordered (judicial) foreclosure sale, the judgment debtor may redeem the property from the purchaser within 1 year after the sale (Mont. Code Ann. §25-13-802; §71-1-228). Mont. Code Ann. §71-1-318(3); §25-13-802 Show the source textThe trustee's deed operates to convey to the purchaser, without right of redemption, the trustee's title and all right, title, interest, and claim of the grantor and the grantor's successors in interest |
| Rules for recovery companies | Montana's Uniform Unclaimed Property Act makes an owner's agreement to pay someone to locate or recover property void if it is signed between the date the property is presumed abandoned and 24 months after it is paid or delivered to the state administrator. That waiting period does not apply to an owner's agreement with an attorney to file a claim for identified property or to contest a denied claim. Any such agreement must be in writing, describe the property and the services, be signed by the apparent owner, and state the value of the property before and after the fee. The section sets no percentage cap; compensation that is unconscionable is unenforceable, and the owner or the administrator can sue to reduce it. Mont. Code Ann. §70-9-825 Show the source textunenforceable if it was entered into during the period commencing on the date the property was presumed abandoned and extending to a time that is 24 months after the date the property is paid or delivered to the administrator |
How surplus funds arise in Montana
When a home in Montana is sold at a foreclosure sale or a tax sale for more than the debt and the costs of the sale, the money left over is surplus funds, also called excess proceeds or overage. It does not belong to the lender or to the buyer. Liens recorded behind the foreclosed debt are paid first, and what remains belongs to the former owner or to the owner's heirs. Read surplus funds explained for the general rules and liens and competing claims for the order of payment.
How a claim moves in Montana
We confirm the sale figures in the public record, identify which office in Montana is holding the money, and prepare and file the claim the way that office requires, advancing the costs. Because we bring the whole record with us, the claim does not stall on a missing document, a competing name or a missed date. See how to qualify for what we handle and what you provide. Notices about surplus are usually mailed to the last address on record, which is often the home that was sold, so do not wait for a letter. In Montana that program is the Montana Department of Revenue, Unclaimed Property.
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, Montana law may allow a simplified procedure, or a probate court may need to appoint a personal representative. See estate and heir recovery and probate assistance.
Working with a recovery company in Montana
Montana regulates this kind of service. Montana's Uniform Unclaimed Property Act makes an owner's agreement to pay someone to locate or recover property void if it is signed between the date the property is presumed abandoned and 24 months after it is paid or delivered to the state administrator. That waiting period does not apply to an owner's agreement with an attorney to file a claim for identified property or to contest a denied claim. Any such agreement must be in writing, describe the property and the services, be signed by the apparent owner, and state the value of the property before and after the fee. The section sets no percentage cap; compensation that is unconscionable is unenforceable, and the owner or the administrator can sue to reduce it. (Mont. Code Ann. §70-9-825)
Any agreement you sign, with us or with anyone else, has to follow that rule.
No out-of-pocket expense. Our only payment is a completion fee taken from the surplus once it is recovered. Where your state requires a licensed attorney for a court or probate filing, a licensed attorney handles it, and you still pay nothing out of pocket. Before you sign with anyone, read what a surplus funds scam looks like.
Questions about surplus funds in Montana
Enough to prove who you are and how you held the property: identification, the deeds, any notice you received, and, if the owner has died, the estate paperwork. We do the rest for Montana, from locating the funds to filing the claim.
After a trustee's sale, the trustee pays the sale costs and the secured debt, then must deposit any surplus funds with the county clerk and recorder, who passes them to the county treasurer, and must mail notice of the surplus to everyone who was sent the sale notice. To be paid, a claimant files a petition in the district court of that county; the court decides the order of priority and orders the county treasurer to pay. After a court (judicial) foreclosure, the court directs payment of surplus money to the person entitled to it.
No out-of-pocket expense. We advance the costs and are paid a completion fee from the surplus only after it is recovered. Where a court or probate filing requires a licensed attorney, a licensed attorney handles it.