Disclaimer: This is general information, not legal advice. I am not a lawyer. For specific legal guidance about claiming surplus funds after a foreclosure sale in Ohio, consult a licensed Ohio attorney.
Detailed Answer
If a sheriff’s sale of foreclosed property in Ohio yields money left over after paying the judgment, costs, and higher‑priority liens, those leftover funds are called surplus (sometimes “overplus”). Recovering that money requires bringing a court proceeding so the court can determine who is legally entitled to the surplus and order the sheriff to pay it out.
Ohio law governs how levy and execution proceeds are handled; see Ohio Revised Code, Chapter 2329 (Executions and distribution of sale proceeds): https://codes.ohio.gov/ohio-revised-code/chapter-2329. That chapter includes the statutory framework for distribution and competing claims. The general steps below explain how claimants typically proceed in Ohio.
1) Confirm that a surplus exists and document the sale
- Obtain the sheriff’s sale record and the clerk’s distribution journal (often available from the county sheriff’s office and the clerk of courts where the foreclosure case was filed). The sale paperwork will show the sale price, amounts paid to satisfy the judgment and liens, costs, and any reported surplus.
- Get the foreclosure case number and all sale-related documents (certificate of sale, audit/settlement sheet, sheriff’s return). These documents are the foundation of your claim.
2) Identify potential claimants and priorities
Ohio follows a priority system: liens and judgments recorded before the sale and certain statutory claims (taxes, prior mortgages, recorded liens) will be paid first. The former property owner (the mortgagor) is often entitled to surplus once all senior liens and costs are paid. But other creditors with recorded interests that outrank the foreclosing lien may also have claims.
3) Choose the correct court procedure (special proceeding / application)
To get a court order directing distribution of surplus, you must file a civil action or a special proceeding in the court that handled the foreclosure and sale (typically the county common pleas court where the foreclosure judgment was entered). Filing can take the form of:
- A motion or application for distribution of surplus funds (often called an application for overplus or motion to disburse surplus), or
- A separate special proceeding or civil complaint titled to seek a judicial determination of the surplus ownership and distribution.
The filing should ask the court to: (a) determine who is entitled to the surplus; (b) order distribution of the funds; and (c) resolve competing claims, if any.
4) Prepare your filing and supporting evidence
Include the following in your filing:
- Caption that references the original foreclosure case and county.
- A clear statement of the relief sought (distribution of surplus funds to the named claimant).
- Attachment of the sheriff’s sale paperwork, the clerk’s distribution journal, and any certificate of sale or sheriff’s return showing the surplus amount.
- Proof of entitlement: deed, mortgage, payoff statements, lien releases, recorded assignments, or an affidavit explaining your interest in the property and why you are owed the surplus.
- A proposed form of order directing the sheriff to deliver the surplus to the claimant.
5) Serve notice on interested parties
Ohio courts require notice to all persons or entities who may claim an interest in the surplus. Typical parties to serve include:
- The sheriff or deputy who conducted the sale
- All recorded lienholders and mortgagees of record at the time of sale
- The foreclosing plaintiff (the judgment creditor)
- Any party who appeared in the original foreclosure action
- Other potential claimants identified by title search
Service rules and methods follow Ohio civil procedure and local court rules. Be sure to use the service methods the court requires (personal service, certified mail, or service by publication if a claimant cannot be located).
6) Attend the hearing and respond to objections
The court may schedule a hearing. At the hearing the parties present evidence about priorities, the amounts due, and who has legal title or lien rights. If someone objects, the court resolves the dispute and decides distribution. If there are no objections and your paperwork is in order, the court may grant the application without a contested hearing.
7) Obtain a court order and payment
If the court finds you are entitled to the surplus, it will enter an order authorizing the sheriff to pay the funds to you (or your attorney/trustee). The sheriff then disburses the money according to the order.
8) Consider timing, liens, and tax consequences
- Timing: the court’s process can take weeks to months, especially when multiple claimants contest the funds.
- Liens: even after the sale, some liens (e.g., unpaid taxes, municipal liens) may need to be paid from the surplus.
- Taxes: surplus funds may have tax implications for the recipient; consult a tax professional.
When to get help from an attorney
If the surplus is contested, if multiple creditors claim rights, if title issues exist, or if you are unsure what paperwork to file and how to serve notice, consider hiring an Ohio attorney experienced in foreclosure or real property litigation. An attorney can prepare pleadings, perform a title search, handle service, present evidence at hearing, and protect your rights in court.
Helpful Hints
- Start by getting the sheriff’s sale paperwork and the clerk’s distribution ledger — these show whether a surplus exists and its amount.
- Run a title search to find all recorded liens and potential competing claimants before filing. Failures to notify a known lienholder can delay the process.
- Label your filing clearly (for example, “Application/Motion for Distribution of Surplus Funds — Foreclosure Case No. ___”) and attach copies of the sale and distribution documents.
- File your application in the same common pleas court that issued the foreclosure judgment and where the sale was conducted.
- Use affidavits and certified documents whenever possible — courts rely on official records and sworn statements.
- Watch local court rules for service requirements and filing fees; some courts require a proposed order and set hearing dates in advance.
- If a potential claimant cannot be located, courts sometimes allow service by publication; follow local rules strictly for timelines and proof of publication.
- Keep organized records of all communications, filings, receipts, and the court’s orders; you will need them if disputes arise or for tax purposes.
- Consider a short consultation with an Ohio attorney if the surplus is sizable — attorneys can sometimes recover funds more quickly and protect against competing claims.
Key legal resource: Ohio Revised Code, Chapter 2329 (for execution and distribution of sale proceeds): https://codes.ohio.gov/ohio-revised-code/chapter-2329.
If you want, I can outline a sample checklist or draft language for a basic application/motion you would file in Ohio court (this is educational only, not a substitute for an attorney’s work).