Detailed Answer
After a foreclosure sale in Oklahoma, “surplus funds” are the remaining proceeds once the sale price exceeds the total owed on the mortgage or judgment, plus interest, fees and costs. Two main processes govern foreclosures: trust deed sales under a power of sale and judicial sales under a writ of execution. Both require the trustee or sheriff to distribute any surplus to the borrower or judgment debtor.
Trust Deed Sales: Under Oklahoma law, a trustee conducting a sale under a deed of trust must apply proceeds first to the debt, then to interest and costs. If the sale produces a surplus, the trustee must pay it to the trustor (borrower) within ten days. See 46 O.S. § 44.
Judicial Sales: When a sheriff sells property to satisfy a money judgment, Oklahoma Statutes require the sheriff to apply sale proceeds to the judgment, interest and court costs. Any remainder must go to the defendant or their assigns. See 12 O.S. § 697.
To determine if surplus funds remain after a foreclosure sale, follow these steps:
- Obtain the Report of Sale. After the sale, the trustee or sheriff files a Report of Sale with the county clerk. This document shows the sale price, amounts applied against liens and any surplus.
- Search County Records. Visit the county clerk’s office or its online portal. Search by case number, property legal description or party names to locate foreclosure and sale documents.
- Check the Surplus Funds Register. Many counties maintain a list of unclaimed surplus proceeds. Ask the clerk for the “unclaimed surplus” or “funds awaiting distribution” docket.
- Contact the Trustee or Sheriff. The trustee (for trust deed sales) or sheriff (for judgment sales) can confirm whether they received surplus funds and advise on how to claim them.
- File an Application for Distribution. If a surplus exists, submit a written application or affidavit with the clerk’s office, demonstrating your right to the funds (e.g., proof of payoff or lien priority).
- Observe Claim Deadlines. Oklahoma statutes do not set a specific deadline for claiming surplus from foreclosure sales, but unclaimed funds often escheat to the county after two years. Claim promptly to avoid forfeiture.
If you hold a junior lien or have a subordinate interest, you may also be eligible for surplus but must establish your lien’s priority in the property records.
Note: This overview is for educational purposes and does not create an attorney–client relationship. Consult a qualified Oklahoma attorney for advice on your specific situation.
Helpful Hints
- Bring the foreclosure case number or property legal description when you visit the county clerk’s office.
- Request copies of the Report of Sale and the surplus funds docket.
- Verify your lien priority by reviewing recorded deeds and lien instruments.
- Confirm local clerk’s office hours and online search options.
- Consider working with a title company or attorney to navigate complex lien priorities and deadlines.