Learn where Montana mortgage and tax-sale surplus goes, how claims work, the stated timelines, third-party rules, and what recovery agents should check first.
| Foreclosure type | The foreclosure type and sale process aren't spelled out in the official sources we checked. |
| Mortgage surplus | Before surplus remains, the trustee pays sale costs and expenses, then the debt secured by the trust indenture. The county clerk and recorder deposits any surplus with the county treasurer. A district court orders payment and decides priority. Junior interests, liens, or claims share according to their former priority. (Mont. Code Ann. § 71-1-316) |
| Tax sale surplus | Surplus includes the part of the opening bid equal to half the land and dwelling’s most recent assessed value, plus any amount the purchase price exceeds the opening bid. The county treasurer distributes surplus to the legal titleholder of record within 30 days after receiving payment from the tax-deed purchaser. If someone other than the assignee buys the tax deed, the treasurer also pays the assignee specified amounts. (Mont. Code Ann. § 15-18-220(4)) (Mont. Code Ann. § 15-18-221) |
| Deadlines | For surplus covered by section 70-9-404, the owner or the owner’s agent has 60 days after the sale to demand it. If they do not, it must be paid into the county treasury, subject to the owner’s order. At least 20 days before a mortgage-surplus hearing, notice must be served on parties sent notice of the surplus under subsection (1) and anyone else who appeared in the case. For tax sales, the treasurer must distribute surplus within 30 days after receiving the purchaser’s payment. That is a distribution timeline, not a stated claim deadline. (Mont. Code Ann. § 70-9-404) (Mont. Code Ann. § 71-1-316(3)(c)) (Mont. Code Ann. § 15-18-221) |
| If no one claims it | For surplus covered by section 70-9-404, if the owner or the owner’s agent does not demand it within 60 days of the sale, it must be paid into the county treasury, subject to the owner’s order. The Montana statutes we checked don’t say what happens to unclaimed tax-sale surplus. (Mont. Code Ann. § 70-9-404) |
| Fees and agreements | No fee cap or agreement rule for recovery agents is stated. A separate abandoned-property law voids certain recovery agreements during a specified period and has an attorney exception, but it does not establish that rule for foreclosure or tax-sale surplus. In mortgage-surplus proceedings, a party awarded funds based on an existing interest or lien may seek costs and attorney fees from the surplus. (Mont. Code Ann. § 71-1-316(4)) (Mont. Code Ann. § 70-9-825) |
| Third parties | Court or attorney route. A party seeking mortgage surplus must petition the district court for an order. The statute does not specify whether an agent or attorney-in-fact may claim for an owner. For tax deeds, the statute directs payment of specified amounts to an assignee in the stated circumstance. (Mont. Code Ann. § 71-1-316(3)(a)) (Mont. Code Ann. § 15-18-221) |
Checked against the official state code and government office pages in November 2026.
This guide covers mortgage foreclosure and tax-sale surplus in Montana. The rules differ, so keep the funds and claim process separate for each track.
The foreclosure type and sale process aren't spelled out in the official sources we checked.
For a trust indenture trustee’s sale, the trustee first pays sale costs and expenses, including reasonable trustee and attorney fees. The trustee then pays the debt secured by the trust indenture. Any surplus goes to the county clerk and recorder, who deposits it with the county treasurer. The trustee then has no further responsibility for the surplus. (Mont. Code Ann. § 71-1-316)
To seek payment, a party must petition the district court in the county where the money is deposited. The court decides the priority of interests, liens, and claims. It then directs the treasurer to pay by written order. Junior interests, liens, or claims share the surplus in the same priority order they had in the property. At least 20 days before the hearing, notice of the petition must be served on any party sent notice of the surplus funds under subsection (1), and on any other party who appeared in the case. (Mont. Code Ann. § 71-1-316) For surplus covered by section 70-9-404, the owner or the owner’s agent must demand the surplus within 60 days of the sale. If they do not, it must be paid into the county treasury, subject to the owner’s order. (Mont. Code Ann. § 70-9-404) The statute doesn’t say that the former owner automatically receives the money. We didn't find this spelled out in the state code or on official sites. Treat it as a gray area.
A party awarded any portion of the surplus because of an existing interest or lien may seek costs and attorney fees from the surplus. Costs and attorney fees must be allowed to a claimant whose lien is established. Reasonable attorney fees must be allowed to the defendant if the claimed lien is not established. (Mont. Code Ann. § 71-1-316(4))
Section 15-18-220(4) counts as surplus the part of the opening bid equal to half of the land and dwelling’s most recent assessed value. Any amount the purchase price is higher than the opening bid also counts as surplus. These funds are distributed under section 15-18-221. (Mont. Code Ann. § 15-18-220(4))
After a tax deed sale, the county treasurer distributes surplus to the legal titleholder of record. The treasurer must do this within 30 days after receiving payment from the purchaser. That’s the treasurer’s deadline, not a separate deadline for an owner to file a claim. (Mont. Code Ann. § 15-18-221)
There’s also a rule for an assignee. If someone other than the assignee purchases the tax deed, the treasurer must pay the assignee the amount paid for the tax-lien assignment and other specified amounts. The statute says the legal titleholder receives surplus, but doesn’t expressly say the assignee’s payments come first. (Mont. Code Ann. § 15-18-221)
On the mortgage track, a party seeking payment needs a district court order. The court decides competing interests and directs the county treasurer. At least 20 days before the hearing, notice of the petition must be served on any party sent notice of the surplus funds under subsection (1), and on any other party who appeared in the case. (Mont. Code Ann. § 71-1-316) The statute does not specify whether an agent, attorney, or person acting under a power of attorney may claim for an owner. (Mont. Code Ann. § 71-1-316)
The tax-sale law specifically directs payment to an assignee in the situation it describes. It doesn’t say agents or attorneys-in-fact can claim for the legal titleholder. A separate abandoned-property law covers some agreements to recover property presumed abandoned. It doesn’t establish that its agreement rule applies to real estate foreclosure or tax-sale surplus. (Mont. Code Ann. § 15-18-221) (Mont. Code Ann. § 70-9-825)
I've been recovering surplus funds since 2013. That's over 2,000 cases and more than $100 million recovered for foreclosure victims across the country. These cases involve people and families, so a careful, respectful approach matters. Start by identifying which track applies and confirming where the funds are held.
If you want to learn how this business actually works, join the free Surplus Funds Masterclass at surplusfunds.ai, or join the free Surplus Funds Collective community on Skool at skool.com/surplusfunds.
This guide is education, not legal advice. Laws change, so check the official statute and talk to a licensed attorney in your state before you act.
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