Detailed Answer
When a property is sold at a foreclosure sale in Arkansas, the sale proceeds first satisfy the outstanding mortgage debt, accrued interest, taxes, and sale expenses. Any amount left over is called “surplus funds.” To determine if surplus funds remain, an interested party—often the former homeowner or a junior lienholder—must follow these steps under Arkansas law:
- Identify the foreclosure case: Obtain the case number and sale date from the county where the property is located. Foreclosure sales typically occur through the circuit court clerk’s office under Ark. Code Ann. § 16-56-1201 et seq. (referencing civil procedure for non-judicial and judicial foreclosures).
- Access the court docket and sale return: Request the clerk’s “return of sale” or hearing transcript. This document shows the sale price, amounts paid to the mortgagee, and any surplus. Arkansas law requires the clerk or sheriff to file a report of sale with the court. You can search online via the county clerk’s public records portal or visit the clerk’s office in person.
- Review records for surplus deposit: Under Ark. Code Ann. § 18-50-201(c), if sale proceeds exceed the debt and costs, the excess must be deposited with the circuit clerk. Check the clerk’s trust fund or escrow ledger for a surplus entry under the foreclosure case number.
- File a claim for surplus: If you locate a surplus, submit a written application or petition with the circuit clerk’s office. Provide proof of your interest (e.g., mortgage, deed of trust, or proof of ownership). The clerk then schedules a short hearing to confirm the claimant’s right to the funds.
- Monitor unclaimed surplus: If no party claims the surplus within one year, the clerk must deliver the unclaimed funds to the State Treasurer under the Unclaimed Property Act, Ark. Code Ann. § 18-28-201 et seq. You can search the State Treasurer’s unclaimed property database to see if funds have been forwarded.
By systematically reviewing court filings and county clerk records, an interested party can confirm whether surplus funds remain after a foreclosure sale.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.
Helpful Hints
- Contact the circuit court clerk in the county where the property is located—most retain foreclosure sale returns in their public records.
- Use Ark. Code Ann. § 18-50-201(c) for guidance on surplus deposit procedures: Ark. Code Ann. § 18-50-201.
- Check the Arkansas State Treasurer’s Unclaimed Property database for any funds not claimed within one year.
- Gather proof of your interest early (deed of trust, mortgage note, or title documents) before filing a surplus claim.
- Consider hiring a title company or real estate attorney to perform a thorough title search for unrecorded junior liens.