Have or are you or a relative been involved in a mortgage foreclosure? Perhaps a relative has died and neglected to pay the mortgage for a period of time? 

 

Although it can be very tragic to lose family property to foreclosure, sometimes there is a bit of a silver lining to that black cloud--foreclosure surplus! 

 

In many parts of the State of Indiana, the past few years has seen a significant rise in property values. In such cases, the property may be sold at Sheriff's sale for much more than is owed the bank or other creditors. When this happens, there can be a "surplus" of thousands of dollars.  According to Indiana law, the surplus must be paid to the County Clerk to be held in trust.  The law reads, as follows: 

 

 "In all cases in which the proceeds of sale exceed the amounts paid pursuant to IC 32-30-10-14 (1)-(4), the surplus must be paid to the clerk of the court to be transferred, as the court directs, to the mortgage debtor, mortgage debtor's heirs, or other persons assigned by the mortgage debtor."

 

At Forsythe Law, we have developed a specialty in collecting surplus for our clients, and the number of foreclosure cases filed by banks and other mortgage agencies only continues to rise. If you have a question about foreclosure and/or wish to pursue a possible surplus, please give us a call today for a free consultation.