Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When a foreclosure or sheriff’s sale generates surplus funds beyond the amount owed on the mortgage, Ohio law requires a strict distribution process under Ohio Revised Code §2329.51. Before a former homeowner can claim any remaining money, the clerk or sheriff must search records and pay off all valid liens and judgments in order of priority.
To determine if other creditors or lienholders could claim the surplus:
- Review the Foreclosure Record
Ohio R.C. 2329.51 requires the officer to search relevant record books in each county where real estate is located. This search reveals mortgages, judgment liens, mechanics’ liens, tax liens and other encumbrances. - Identify Recorded Liens
Check the county recorder’s office online or in person for recorded liens. Common lien types include: - Junior mortgages or deeds of trust
- Judgment liens entered under Ohio R.C. 2329.02
- Mechanic’s and materialman’s liens under Ohio R.C. Chapter 1311
- Tax liens imposed under Ohio R.C. 5721 or 5703
- Homeowners’ association assessments
- Examine Court Dockets
Search the clerk of courts for pending or unsatisfied judgment liens. Judgment creditors often file a “certificate of judgment” that must be docketed to create a lien. - Evaluate Priority Rules
Under Ohio R.C. 2329.51, surplus funds pay liens in order: (1) purchase costs and prior sale expenses; (2) senior mortgages; (3) judgment liens by date of docketing; (4) other statutory liens; and (5) any remaining balance returns to the original owner. - File a Claim for Surplus
Any creditor with a valid lien should submit a written claim to the clerk or sheriff. Ohio R.C. 2329.54 allows lienholders to contest the distribution within a prescribed time frame—typically 30 days after the sale. - Consult Title Search Reports
A professional title search can identify unfiled or hard-to-find liens. Title companies often reveal UCC-1 financing statements and off-record liens.
If no valid claims exist, the remaining surplus goes to the former homeowner. To protect your interests, verify all possible encumbrances before distributing surplus funds.
Helpful Hints
- Use the county recorder’s online portal for quick lien searches.
- Check both county and municipal court dockets for judgments.
- Order a title report if multiple counties or complex ownership histories exist.
- Keep deadlines in mind: most claims must be filed within 30 days of the sheriff’s sale.
- Contact the clerk or sheriff’s office to confirm the exact procedure for filing surplus claims.
- Maintain accurate records of all communications and filings.
- Consider consulting a licensed attorney if disputes arise over priority or lien validity.
For more on the surplus distribution process, see Ohio Rev. Code §2329.51: codes.ohio.gov/ohio-revised-code/section-2329.51.