Sheriff Auction Surplus

[Tim Wittenborn]

Hello BP!

I recently purchased an auction property for 103k.  The amount owed on the loan was 75k.  Since the sale was confirmed by the judge today, I was on the phone with the sheriff's foreclosure department asking questions about the deed.  I randomly asked about the excess money paid and what happens to it.  The representative confirmed that there is a 27k surplus that the sheriff's office will hold on to until the owner  or heirs claim it.  She said that she was not sure if I was on the list of people that would be able to claim the surplus.

The owner is deceased and has no heirs.  There are no addresses for any person other than the address of the home I purchased.  All of the correspondence going to the deceased and heirs are being send to the same property.  No one has maintained the mail or the home, and no one responded or attended the hearing.

I'm not getting excited here, but the idea that my purchase might be 27k cheaper is seriously giving me chills!  Any one go through this before?  Any chance I will see that money after the non-existent heirs don't claim it?  

Thanks for the tips,

Tim W.

[Wayne Brooks]

No, you certainly will not be eligible for the surplus.

[Tim Wittenborn]

So, after no one shows up to claim the money, because of a lack of heirs, does it just default to the state or the sheriff's office?

[Patrick L.]

Originally posted by @Tim Wittenborn:

So, after no one shows up to claim the money, because of a lack of heirs, does it just default to the state or the sheriff's office?

 You'll have to check your local laws.   As wayne said you have no claim to the funds as the buyer anymore than I do as a random stranger.   

Here the borrower has 60 days to make a claim otherwise the court will appointment a trustee to find the owner/heirs.   The trustee has a year and then after that it goes to the state as unclaimed property and can be claimed back at any point by the owner if they ever come forward.  

[Tim Wittenborn]

Excellent, thanks for responding and clearing that up for me!

Tim W