Sheriff’s Sale Surplus Goes To Owner/Borrower

My news feed this week produced this article from Fox59:  Surplus Funds After Foreclosure: Key Facts and Recovery Options for Homeowners.  The article is not state-specific, so I thought I’d build on the piece by commenting on Indiana law.

In the event an Indiana sheriff’s sale produces surplus (excess) proceeds (money), by statute those funds belong to the owner.  Indiana Code 32-30-10-14 “Application of proceeds of sale; disposition of excess proceeds” provides:

the surplus must be paid to the clerk of the court to be transferred, as the court directs, to the mortgage debtor, mortgage debtor’s heirs, or other persons assigned by the mortgage debtor.

For more on this subject, click on my prior post:  Statutory Disposition of Foreclosure Sale Proceeds.

While we’re on this topic, the result in an Indiana tax sale, albeit a much more complex process than a foreclosure sale, essentially is the same.  See:  Indiana Code 6-1.1-24.7(c).   

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Part of my practice involves representing parties at sheriff’s sales. If you need assistance with a similar matter, please call me at 317-639-6151 or email me at john.waller@dinsmore.com. Also, don’t forget that you can follow me on Twitter @JohnDWaller or on LinkedIn, or you can subscribe to posts via RSS or email as noted on my home page.