When property is sold at foreclosure the money first goes to pay the costs of the foreclosure proceeding. Then payments are made to those with liens (such as the mortgage) on the property. After these are paid, the owner is usually entitled to funds left over. This describes how to get excess money deposited with the court clerk after the mortgage foreclosure is paid. However, this usually requires the owner to file pleadings seeking disbursement.
This discussion applies to Oklahoma only.
Defendant is Entitled to Excess Money
Title 12 Oklahoma Statute. Section 773 is entitled “Payment to Defendant of Overplus after Sale.” provides describes what happens when there is more than enough money to satisfy the mortgage foreclosure. It states:
If, on any sale made as aforesaid, there shall be in the hands of the sheriff or other officer more money than is sufficient to satisfy the writ or writs of execution, with interest and costs, the sheriff or other officer shall, on demand, pay the balance to the defendant in execution.
This allows the foreclosed owner to receive the excess money paid into the court clerk.
What is Needed for the Court Clerk to Pay Out Excess Money to Foreclosed Owner?
1. Contact the court clerk to determine the exact amount being held.
2. Contact Judge’s Office to Set a Hearing
3. File a motion to disburse funds with a notice of hearing
4. Send notice to all interested parties
5. Prepare a order for disbursement
6. Attend hearing with order
7. File order with court clerk
What if the Owner / Defendant is Deceased?
Probate has Been Filed: If there is a probate pending in Oklahoma the personal representative or executor can file this motion even if the probate is in a different county than the foreclosure. This may be possible even if the foreclosure has been concluded.
No Probate: If not probate is pending and the funds are less than $50,000 it may be possible to file a motion with an appropriate small estate affidavit. In other cases a probate may be required. Probate Information