Disclaimer: This article is for informational purposes only and does not constitute legal advice and does not establish an attorney-client relationship.
Understanding Foreclosure Surplus Funds in West Virginia
When a property sells at a foreclosure auction, the court uses the proceeds to cover sale costs, the mortgage, and any junior liens. Any amount left over is called surplus funds. Under West Virginia law, those funds belong to the party with the highest legal claim after costs and liens are paid. Common claimants include former owners, junior lienholders, and tenants with financial interest in the property.
Steps to Determine if Surplus Funds Exist
- Review the Court’s Final Sale Order: The Circuit Court issues a final order confirming the sale and authorizing distribution of proceeds. That order will note if surplus funds remain. You can find the order in the case file maintained by the county Circuit Court Clerk.
- Consult the Circuit Court Clerk: Contact the clerk’s office in the county where the property is located. Provide the case number, property address, or the names of the parties. Clerks can confirm whether the court holds surplus funds and the amount.
- Search Online Case Records: Many West Virginia courts post dockets online. Use the West Virginia Judiciary’s court directory at courtswv.gov to locate the correct county portal. Enter the case details to view filings and docket entries.
- Check Statutory Requirements: West Virginia Code § 38-2-36 (link) governs distribution of surplus funds. It explains who may apply for the surplus and sets any deadlines for claims.
- File an Application for Surplus Funds: If the court holds surplus funds, you must file an application or motion to claim them. Include proof of your interest, such as a lien document or ownership record. Follow the court’s filing rules and deadlines to protect your rights.
Additional Considerations
If you do not claim surplus funds within the period allowed by West Virginia law, the funds may become unclaimed property and eventually escheat to the state. Unclaimed property laws vary by jurisdiction, so act promptly.
Helpful Hints
- Review the sale confirmation and distribution order for surplus details.
- Keep a record of case numbers and property details when contacting the clerk.
- Use accurate case names and numbers when searching online dockets.
- Prepare documentation proving your interest before filing a claim.
- Consult a licensed attorney if you have questions about your eligibility.