Detailed Answer
When a property sells at a sheriff’s sale or foreclosure in Oklahoma, any funds left after paying liens and costs become “surplus funds.” Under state law, an individual who proves a legal interest in those surplus funds can recover them. A former spouse or a decedent’s survivor should follow these steps:
1. Identify the Sale and Case
Locate the court case number and the sheriff’s or clerk’s sale record. You can find records at the county courthouse or the Oklahoma State Courts Network (OSCN).
2. Determine Your Legal Interest
- Former Spouse (Divorce): A divorce decree can award you rights to property proceeds. If the court’s judgment created a lien on the former spouse’s real property (see 12 O.S. § 706), you may claim surplus funds under that lien.
- Survivor/Heir (Death): If the owner died owning equity in property, the decedent’s probate estate or heirs may claim surplus. A personal representative with Letters Testamentary or an heir with an affidavit in lieu of administration (12 O.S. § 2001) can assert entitlement.
3. File a Written Claim with the Court Clerk
Prepare a petition or application for surplus funds in the original foreclosure or execution case. Include:
- Reference to the case number and sale date.
- Certified copies of your divorce decree or proof of heirship (letters, death certificate, will).
- Evidence of any judgment lien created by divorce (12 O.S. § 706) or probate documents.
- Contact information and a proposed order for payment.
File the claim at the clerk’s office in the county where the sale occurred. Pay any required filing fee.
4. Observe Statutory Deadlines
Under 12 O.S. § 697, you must file within one year after the date of the sale. Late claims may be barred.
5. Attend Any Hearing
If someone contests your claim, the court sets a hearing. Bring originals of all documents and be prepared to explain your entitlement.
6. Obtain and Enforce the Order
If the court grants your claim, it issues an order directing the sheriff or clerk to pay you directly. Present the certified order to the treasury for disbursement.
Key Statutes: 12 O.S. § 696 (surplus funds payment); 12 O.S. § 697 (claim procedures); 46 O.S. § 41 (foreclosure surplus).
Helpful Hints
- Gather certified documents early to avoid delays.
- Check the exact sale date and case number before filing.
- Use a cover sheet summarizing your claim for clarity.
- Confirm filing fees and acceptable payment methods with the clerk.
- Consult an attorney if another party contests your claim or if the estate is complex.