Franklin County has outlined a new process to ensure the rightful property owner will receive any excess money from a foreclosure.
The new policy, which took effect November 1, calls for the Franklin County Clerk of Courts office to notify a property's former owner about any leftover money following the sale of a foreclosed home and paying any back taxes.
“Individuals may not be aware that when a property is foreclosed on, there’s actually excess funds leftover, so they are rightfully entitled to receive notice and possibly receive those funds," says Sharlene Chance, director of compliance.
Chance says that since 2000, the clerk's office has reported about $8 million in leftover foreclosure funds related to 2,700 properties.
The changes follow a Columbus Dispatch series on homeowners who'd lost thousands of dollars because Franklin County did not notify them of money leftover waiting for them to collect. In some instances, an unrelated person had claimed the money.
Homeowners can now file a motion to obtain the excess funds and request a hearing. After 14 days, and with no objections, the clerk’s office will release a check with leftover foreclosure funds. An ID will be required to receive the check.
“It would be up to the individual to update their address mailing address with the court," Chance says.