What are the laws regarding fees to help recover mortgage foreclosure surplus funds in Indiana, USA?

Question from brad, What are the laws regarding fees to help recover mortgage foreclosure surplus funds in Indiana, USA?

Answer from AI:

In Indiana, when a property is sold at a foreclosure auction, and the sale price exceeds the amount owed on the mortgage, the remaining balance is called “surplus funds” or “excess proceeds.” Homeowners may be entitled to claim these funds, but there are specific laws and procedures in place to ensure the proper distribution of these funds. This article will provide a general overview of the laws and regulations regarding fees to help recover mortgage foreclosure surplus funds in Indiana.

Indiana Code on Foreclosure Surplus Funds

The primary law governing the distribution of foreclosure surplus funds in Indiana is Indiana Code Title 32, Article 29, Chapter 7. This statute outlines the process for distributing surplus funds after a foreclosure sale and the rights of various parties to claim these funds. Some key provisions of this law include:

1. Surplus funds must be deposited with the county treasurer within five days of the foreclosure sale (IC 32-29-7-9).
2. Parties with an interest in the property, such as the former homeowner or lienholders, may file a claim for the surplus funds with the court (IC 32-29-7-10).
3. The court will determine the priority of claims and distribute the surplus funds accordingly (IC 32-29-7-11).
4. Unclaimed surplus funds will be transferred to the county’s general fund after two years (IC 32-29-7-13).

Fees for Assistance in Recovering Surplus Funds

There are no specific Indiana laws that regulate the fees charged by third parties to help homeowners recover foreclosure surplus funds. However, homeowners should be cautious when dealing with third-party companies or individuals offering to help recover these funds for a fee. Some of these companies may charge excessive fees or engage in fraudulent practices.

To protect yourself, consider the following general guidelines:

• Research the company or individual offering assistance to ensure they are reputable and have a history of successfully recovering surplus funds.
• Ask for a written agreement outlining the services provided and the fees charged. Make sure you understand the terms of the agreement before signing.
• Be cautious of companies that charge upfront fees or a percentage of the surplus funds as their fee. It may be more cost-effective to work with a company that charges a flat fee for their services.
• Consult with a legal professional for personalized advice and assistance in recovering surplus funds.

Seeking Legal Advice

Recovering mortgage foreclosure surplus funds can be a complex process, and it may be beneficial to consult with an attorney who specializes in foreclosure law. An attorney can help you navigate the legal process, ensure your rights are protected, and potentially save you money by avoiding unnecessary fees charged by third-party companies.

In conclusion, while there are no specific laws regulating fees for assistance in recovering mortgage foreclosure surplus funds in Indiana, homeowners should exercise caution when dealing with third-party companies offering these services. It is essential to research the company, understand the terms of any agreements, and consider seeking legal advice to ensure the best possible outcome.