Detailed Answer
After a foreclosure sale in Indiana, the sale officer (usually the sheriff or a court-appointed commissioner) files a Return of Sale with the Circuit or Superior Court clerk in the county where the property sits. This document shows the gross sale price and details how proceeds get distributed. If proceeds exceed liens, costs, and fees, the difference—called “surplus funds”—remains on deposit.
Review the Return of Sale
1. Contact the county clerk’s office where the foreclosure occurred. Request the Return of Sale or search the clerk’s public docket online.
2. Examine the distribution schedule in the Return of Sale, which lists all claims against the sale proceeds.
3. Look for an entry labeled “surplus” or “excess proceeds.” If the sale price exceeds the total secured debt plus costs, the surplus figure appears here.
(See Indiana Code § 32-29-7-8 for distribution of sale proceeds: https://iga.in.gov/laws/2023/ic/titles/032#32-29-7-8.)
Search County Public Records
If you cannot visit in person, many Indiana counties provide an online case search where you can view foreclosure case files and the Return of Sale. Use the property’s address or the case number to find related documents. Public access terminals at the clerk’s office also allow free searches.
Contact the County Auditor
In some counties, the auditor holds surplus funds after confirmation of sale and distribution. Call or visit the auditor’s office to inquire whether any excess funds from the specified foreclosure case remain on deposit.
Petition to Claim Surplus
If you learn of surplus funds, you must file a petition with the same court within one year of the sale (Indiana Code § 32-29-7-8(c)). In your petition, identify your legal interest in the property or lien priority. The court will schedule a hearing to confirm your claim and authorize disbursement.
Helpful Hints
- Always note the foreclosure sale date and case number when requesting records.
- Review Indiana Code § 32-29-7-8 to understand the timeline and steps for claiming surplus funds.
- Check both the clerk’s and auditor’s offices—some counties split record-keeping duties.
- Consider hiring an attorney if multiple lienholders contest surplus distribution.
- Keep copies of all filings and correspondence to support your claim.