Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When a property sells at a foreclosure auction in Oklahoma for more than the debt owed plus costs, the surplus funds belong to those with a legal interest in the property. Oklahoma law governs how these funds are handled and claimed.
1. Understand Oklahoma’s Foreclosure Surplus Statute
Under Oklahoma’s Deeds of Trust Act, 60 O.S. § 727, the clerk of the district court holds any excess proceeds from a foreclosure sale. The clerk must retain these funds until a valid claimant appears. If no claim arises within one year of the sale, the funds escheat to the county treasury.
Read the statute: 60 O.S. § 727.
2. Locate the Foreclosure Sale Record
To see if surplus funds exist:
- Identify the county where the foreclosure sale occurred.
- Contact the district court clerk’s office or search its online records by case number or property address.
- Review the clerk’s Report of Sale or Distribution Sheet. This document shows the sale price, amounts applied to senior liens, costs, and any remaining balance.
3. Determine Your Eligibility
Parties who may claim surplus funds include:
- The former homeowner or mortgagor.
- Junior lienholders (e.g., second mortgage, judgment creditor).
- Other parties with recorded interests (easements, mechanic’s liens).
4. File a Claim for Surplus Funds
If you identify surplus funds, you must act promptly:
- Prepare an Application for Excess Proceeds in the district court where the foreclosure occurred.
- Attach supporting documents proving your interest (deed, promissory note, lien record).
- File your application before the one-year deadline under 60 O.S. § 727.
5. What Happens if You Miss the Deadline?
If no valid claim arises within one year, the clerk pays the surplus to the county treasurer. Under 60 O.S. § 727, unclaimed funds then go into the county’s general fund. Once escheated, recovery becomes far more complex and may require special legislative or court action.
Helpful Hints
- Keep the foreclosure case number handy to streamline your search.
- Check both the district court’s public terminals and online case search portals for Reports of Sale.
- Consult the county sheriff or the trustee who conducted the sale for confirmation of sale proceeds.
- Gather all documents evidencing your interest in the property before filing your claim.
- Consider speaking with a foreclosure-knowledgeable attorney early to meet all filing requirements and deadlines.