Detailed Answer
When a sheriff conducts a foreclosure sale in Pennsylvania, sale proceeds first cover the mortgage debt, accrued interest, court costs, and junior liens. If the sale generates more funds than owed, the excess is known as surplus funds or overage. Pennsylvania law sets forth the steps for identifying and claiming these funds under 42 Pa.C.S. §8104 (link).
1. Understand Pennsylvania’s Surplus-Fund Rules
Under Pennsylvania Consolidated Statutes Title 42, Section 8104, the prothonotary (court clerk) distributes any surplus sale proceeds after paying all liens and costs. The mortgagor (former homeowner) or other lienholders may file claims to receive these funds.
2. Review the Sheriff’s Sale Report
After the sale, the sheriff issues a report showing the bid amount and distribution of proceeds. Request this report from the sheriff’s office in the county where the property is located. The report indicates whether a surplus exists.
3. Contact the County Prothonotary’s Office
The prothonotary maintains the case file and surplus-fund register. Visit or call the prothonotary’s office to ask if they hold surplus funds for the foreclosure case. Provide the case docket number or property address to streamline your inquiry.
4. Search the Court Docket Online
Many Pennsylvania counties offer online docket searches. Use the Unified Judicial System’s web portal or the county court’s website to locate the foreclosure case. Review recent entries for notes on surplus funds and distribution hearings.
5. File a Petition for Surplus Funds
If the prothonotary confirms remaining surplus, you must file a petition to claim it. Draft a petition stating your interest, attach proof of your lien or former ownership, and request disbursement of the surplus. The court will schedule a distribution hearing per 42 Pa.C.S. §8104.
6. Attend the Distribution Hearing
At the hearing, the court reviews all claims to surplus funds. Present documentation such as the sheriff’s sale report, title records, and lien instruments. If multiple claimants appear, the court apportions funds according to lien priority.
7. Collect Your Funds
Once the court approves your claim, the prothonotary issues a check for your share of the surplus. Processing times vary by county but typically range from a few weeks to a couple of months.
Helpful Hints
- Keep accurate case details: Note the docket number, sale date, and county.
- Check deadlines: Pennsylvania law requires prompt petition filing after sale.
- Consult online resources: Use the Unified Judicial System’s eCourts portal for updates.
- Gather proof: Bring deeds, mortgage records, and identity documents to the hearing.
- Monitor public notices: Some counties publish surplus-fund notices in local newspapers.
- Consider legal advice: An attorney can help prepare your petition and represent you at hearings.