How to Recover Surplus Funds from a Foreclosure Sale in Ohio

In Ohio, surplus funds from a foreclosure sale represent the excess third-party sale proceeds left after all debts, including but not limited to property taxes, court costs, mortgages, liens, and sale costs, have been paid. 

This guide aims to help you navigate the process of foreclosure sale surplus funds recovery, pursuant to Ohio Revised Code (ORC) 2329.44, ensuring that your rights are protected and upheld. 

Understanding Surplus Funds in Ohio Foreclosures 

Foreclosure in Ohio involves a judicial process. Once a plaintiff obtains a judgment entry and decree of foreclosure, it can initiate the foreclosure auction, which is increasingly handled online by a private selling officer or Sheriff. 

Post-pandemic trends show a rise in third parties other than the first mortgagee or subordinate lien holders purchasing foreclosed properties. This shift has led to an increase in surplus funds from foreclosure sales.

When a foreclosed property sells to a third party for more than the total owed on mortgages, liens, and court costs, the surplus funds are owed to the judgment debtor or their legal representative, as stipulated by ORC 2329.44. 

Understanding the process required to recoup these funds is instrumental in recovering surplus funds after foreclosure and why we encourage you to retain a foreclosure surplus funds attorney in Ohio, like Matthew Curry and MPC LAW. 

Identifying a Potential Surplus 

Once the property is sold at a foreclosure auction and the order of sale is returned by the private selling officer or Sheriff, the Plaintiff has 30 days to confirm the sale (See ORC 2329.31).

Thereafter, the purchaser has 30 days to pay the balance of the purchase price (See ORC 2329.30).

Steps to Recovering Surplus Funds After Foreclosure

1. Claiming the Funds
   1. After the foreclosure auction, surplus funds from a foreclosure sale are typically deposited with the clerk of courts in the county where the property was sold.
   2. According to ORC 2329.44, these surplus funds are payable to the judgment debtor or the judgment debtor’s legal representatives.
2. Notification and Claim Process
   1. The clerk of courts usually notifies the former property owner or other potential claimants of the availability of excess funds. The notification process and the required claim forms may vary by county.
   2. Claimants can recoup these funds by filing a motion for supplemental distribution, with a supporting order, to claim the surplus. This legal step is crucial and requires proper legal arguments and service upon all parties involved, setting the stage for a court hearing. For this reason, we strongly recommend retention of an attorney like Matthew Curry and MPC LAW.
3. Attending the Hearing: Appearance at any scheduled hearing is mandatory. Here, disputes over the right to the surplus funds may arise, and the court’s decision will determine the rightful claimant.
4. Legal Assistance
   1. Given the legal complexities and variations by county, consulting with an attorney like Matthew Curry and MPC LAW is imperative.
5. Receiving the Funds: Once the court approves the distribution, the surplus funds are typically mailed to retained counsel and available within 30 days.

How Matthew Curry at MPC LAW Can Help

Engaging with an experienced foreclosure surplus funds attorney like Matthew Curry can significantly streamline the process of securing surplus funds from a foreclosure sale. His expertise includes filing necessary motions, representing your interests at hearings, and ensuring all legal deadlines are met to secure your surplus funds.

Contact Matthew Curry and MPC LAW to discuss how we can assist you in claiming your surplus funds from a foreclosure sale.