How to Claim Surplus Funds After a Foreclosure or Tax Sale in Ohio

Detailed answer

When a property is sold at a foreclosure or county tax sale, the sale can produce more money than is needed to pay the foreclosing party’s judgment, taxes, fees, and costs. That extra money is commonly called “surplus,” “overage,” or “overbid.” In Ohio, former owners, lienholders, heirs, personal representatives, and other parties with a legal interest may be entitled to claim those surplus funds. This section explains how to determine whether surplus exists, who can claim it, and the usual steps to recover it under Ohio procedures.

1. Confirm whether surplus funds exist

1. Contact the county sheriff’s office or the clerk of court that handled the sale. Ask for the sale docket or distribution record showing the sale price and the amounts paid to the judgment creditor, tax authorities, and other lienholders. If the sale price exceeded the amounts owed plus sale costs, there may be a surplus available.
2. For tax sales specifically, contact the county treasurer or auditor to confirm the figures and whether the county conducted a tax foreclosure or a sheriff’s sale for taxes.

2. Who has priority to claim surplus

Priority generally follows the order of legally enforceable interests recorded against the property: judgment lienholders, mortgage holders, taxing authorities, and finally the former record owner (or their successor in interest). If multiple interests compete, the court typically decides distribution based on those priorities and amounts owed.

3. Identify your legal status and prepare documentation

Only a person or entity with a recognized legal interest can recover surplus. Typical claimants include:

• The record owner at the time of sale (or that person’s heirs).
• A holder of a recorded lien (mortgage, judgment, etc.).
• The personal representative or executor of a deceased owner’s estate (with letters testamentary/administration).

Be prepared to provide proof of identity and proof of your legal interest: recorded deed, recorded mortgage or lien, death certificate, letters of authority from probate court, and a government ID. If you are claiming on behalf of an estate, you will usually need probate documentation (letters testamentary or letters of administration).

4. File the proper claim or motion

In Ohio, surplus money from a judicial sale is typically held in the court registry or by the sheriff until the court orders distribution. To recover surplus you usually must:

1. File an application or motion for distribution of surplus funds with the court that ordered the sale (often the county common pleas court). The clerk’s office can tell you the local practice and required forms.
2. Serve notice on other interested parties (creditors, lienholders, taxing authorities) so they can assert competing claims. The court will set a schedule and may hold a hearing if claims dispute priority or amounts.
3. At the hearing, provide documents proving your interest and the amount you are entitled to receive.

If the sale was a tax foreclosure conducted by the county (instead of a judicial mortgage foreclosure), the county’s procedures may differ, and you should contact the county treasurer or county prosecutor’s office to learn specific steps for claiming any overage.

5. If the property owner is deceased

If your mother has died, do not assume you can simply sign for the funds. You will usually need to show you have authority to act for the estate. That typically means opening probate and obtaining letters of authority (executor or administrator). If the estate was already probated, present the letters of authority and a certified copy of the death certificate when you file your claim for surplus.

6. Timing and deadlines

Act promptly. Courts and county offices may have deadlines for filing claims. If surplus remains unclaimed for an extended time, funds may be turned over to the court registry, the county, or handled under Ohio’s unclaimed funds laws. Because deadlines and local practices vary by county, contact the clerk of courts and the sheriff as soon as you learn of a sale.

7. What to expect after a successful claim

If the court grants your claim, it will issue an order directing the sheriff or court to pay the funds to you. The payment may be by check from the sheriff, the court registry, or from county offices that hold the surplus. The claimant may be responsible for minor administrative fees.

8. Statutes and where to look

Key Ohio law sources that govern judicial sales, distributions, and related procedures include the Ohio Revised Code chapter on proceedings in execution and sale. For general reference, review:

• Ohio Revised Code Chapter 2329 — Proceedings in Execution and Sale (procedures for sheriff’s sales and distribution).
• Ohio Revised Code Chapter 5721 — Taxation of Real Property (for matters related to property taxes and tax liens).

Because local practice varies, the clerk of courts for the county where the sale occurred can tell you the exact local steps and any local rule citations.

Practical sample checklist (hypothetical facts: mother owned house sold at sheriff’s sale; you are her adult child and potential heir)

1. Contact the county sheriff’s office and clerk of courts to confirm the sale and whether surplus exists.
2. Obtain the sale distribution record and copies of the sale docket, deed of transfer, and any sheriff’s sale report.
3. If your mother is alive and is the record owner: get a signed authorization from her, photo ID, and proof of ownership.
4. If your mother is deceased: open probate and obtain letters of authority as the executor or administrator. Get a certified copy of the death certificate.
5. Prepare and file an application/motion for distribution of surplus with the court that ordered the sale. Attach proof of identity and proof of your legal interest.
6. Serve required parties (ask the clerk who must be served). Attend any hearing ordered by the court.
7. If the court approves, collect the funds according to the court’s order.

Helpful Hints

• Start by calling the county clerk of courts and the sheriff. They can confirm whether surplus exists and describe local filing requirements.
• If your mother is deceased, you will likely need to be appointed personal representative through probate before you can claim funds.
• Gather recorded documents early: deed, mortgage, liens, death certificate, and probate letters. The more documentation you have, the smoother the claim process.
• Watch out for scams. Some companies advertise to recover “overages” for a large fee or ask for an upfront payment. Verify any company before sharing personal or estate information.
• If multiple parties claim the same surplus, expect a hearing. The court decides priority and distribution.
• If you are unsure how to proceed or if the competing claims are complex, consider consulting a licensed Ohio attorney who handles probate or real property claims. A lawyer can file motions and attend hearings for you.
• Act promptly. Delays may complicate recovery and could lead to funds being transferred to other parties or treated as unclaimed.