Detailed Answer
In Ohio, a judicial foreclosure sale occurs under Ohio Revised Code Chapter 2329. After the sheriff sells the property, sale proceeds pay off liens, taxes, court costs and fees in order of priority. When the sale price exceeds the total owed, the remaining balance forms “surplus funds.” An interested party—such as a former homeowner, a junior lienholder or a judgment creditor—can determine whether surplus funds remain and how to claim them.
1. Understand the Foreclosure Distribution Process
Ohio Revised Code Section 2329.34 governs how the sheriff allocates sale proceeds. The process pays the foreclosing creditor first, then junior lienholders, and finally any remaining costs. Any amount left after satisfying all secured claims becomes surplus funds.
2. Obtain Foreclosure Sale Documents
Visit the county clerk of courts—either online or in person—and request the foreclosure sale certificate or journal entry. This document lists the sale price and total debts satisfied. Knowing these figures helps you calculate whether a surplus likely exists.
3. Review the Sheriff’s Report of Sale
The sheriff’s report provides a detailed breakdown of disbursements. Compare the sale price against the sum of liens, taxes and costs. If the sale price exceeds these amounts, the clerk may hold the surplus in trust.
4. Check With the County Sheriff or Treasurer
If no one has claimed the surplus, the unclaimed funds may transfer to the county treasurer under ORC Section 2329.38. Contact both the county sheriff’s office and the county treasurer’s unclaimed funds division. Provide the foreclosure case number or property address to verify any balance.
5. File an Application for Distribution of Surplus Funds
Under ORC Section 2329.36, interested parties must file a motion with the clerk of courts within one year of the foreclosure sale. Your motion should:
- Identify the foreclosure case number and sale date
- Describe your interest in the surplus (e.g., homeowner, lienholder)
- Attach supporting documentation (loan statements, lien records, judgments)
- Show proof of service on other interested parties
If the court grants your application, it will issue an order directing the clerk to distribute the surplus funds to you. Missing the one-year deadline means you forfeit any claim, and the funds will likely become part of the county treasury.
Helpful Hints
- Obtain the foreclosure case number and property address before you start.
- Use the county clerk’s online portal to access sale documents efficiently.
- Note the one-year claim deadline and calendar your filing accordingly.
- Gather proof of your interest, like lien abstracts or payoff statements.
- If multiple parties contest the surplus, consider consulting a local foreclosure attorney for guidance.