Overage to owner of record - Posted by JT-IN
Posted by JT-IN on May 31, 2006 at 09:28:42:
Max: (of course it doens’t work like the example below, but that is how it is in Ohio).
Yes, it is rare that there is an overage amount, but it happens. I have a case now for a property that I bought at SS, where there is a $ 26,484.20 overage amount. There is a 2nd mtg holder that did not answer the judgicial complaint, and if they get off their duff, there will be entitled to part of that amount. The owner will be entitled to the balance of the funds, or the whole amount if the 2nd doesn’t object when the owner files his petition to collect said funds.
I have seen that happen a couple of times, where there was a valid Jr. mtg that did not repond during the suit, and their mtg is then desolved. However, their Note and indebtedness is not desolved, so they can still claim any part of an overage, if it exists. So any party having an interest in the property prior to the foreclosure must be notified that another party is making a claim to the excess funds, and like a foreclosure complaint itself, they all have 20 or 30 days to answer an objection and make a claim to the funds. No claim or answer results in approval of the motion to distrubute funds. So the former owner, under my guidance will be filing his own motion, pro se, for the balance of the funds. We’ll see what happens. He sure could use the 26K, or even part of it… whcih he will surely get 10K minimally.
The distribution of funds from the sale goes like this:
1 Clerk of court fees for administering the sale, including Sheriff’s poundage (commission, graft),
2) unpaid property taxes and assessments,
3) Cost to payoff the secured mtgs that were found to be valid in the complaint, which includes Attys Fees, which includes advertising costs for sale,
4) To the Clerk of coruts, the balance of the sale proceeds in the amount of $ 26,484.20, to hold pending further order of the court.
Hope that example helps…