Detailed Answer
1. Understand Foreclosure Sale Proceeds
When a court orders foreclosure, a public sale follows. The sheriff or court sells the property and collects proceeds. First, costs of sale and court fees get paid. Next, senior lienholders (mortgagees) receive payment. Junior lienholders get paid in order of recordation. Any money left over after satisfying all liens and costs is called “surplus funds” or “overage.”
2. Review Court Docket and Certificate of Distribution
Under Iowa Code § 626A.16, the clerk of court must file a Certificate of Distribution within 30 days after sale. This document details how sale proceeds were applied and whether surplus remains. Anyone can access this filing at the county courthouse or through the Iowa Courts Online Search portal.
3. Examine the Certificate of Sale
The clerk also issues a Certificate of Sale under Iowa Rule of Civil Procedure 1.210 once the sale is confirmed. That certificate lists the sale price and identifies funds paid out versus funds held. If the certificate shows an amount “held” after payments, that figure represents surplus funds.
4. Contact the County Sheriff or Treasurer
After confirmation, some counties hold surplus checks in the sheriff’s office. Others transfer unclaimed surplus to the county treasurer’s office under local regulations. Many counties publish surplus lists online or allow phone inquiries. Search for “surplus sale funds” on the county sheriff or treasurer website.
5. File a Claim for Surplus Funds
If you believe you’re entitled to surplus funds (for example, as the former owner or a junior lienholder), you must file a formal claim. Prepare an Application for Distribution of Surplus Funds that includes:
- Case number and sale date
- Proof of your interest (deed, lien documents, etc.)
- Valid government-issued ID
File your application in the same foreclosure case file. Under Iowa Code § 626A.19, the clerk reviews claims and issues payment if you prove entitlement.
Helpful Hints
- Keep accurate records of the foreclosure case number and sale date.
- Use the Iowa Courts Online Search (iowacourts.state.ia.us) to view dockets remotely.
- Check county websites monthly—some counties list unclaimed surplus funds publicly.
- File your surplus claim promptly; many counties set deadlines.
- Consult an attorney if multiple parties claim the same surplus funds.
References: Iowa Code § 626A.16; Iowa R. Civ. P. 1.210; Iowa Code § 626A.19.