How to Recover Surplus Funds from Tax Foreclosure Sales in Ohio
Every year, millions of dollars in surplus funds sit unclaimed in Ohio county treasuries. If your property was sold at a tax foreclosure auction and the sale price exceeded what you owed in back taxes, that extra money — called surplus funds — belongs to you.
What the Law Says
Under Section 5721.20 of the Ohio Revised Code, when a tax-foreclosed property sells for more than the delinquent taxes, penalties, and costs, the leftover amount is held by the county treasury for the former owner. You have three years to claim it. After that, the money is forfeited to the county's delinquent tax fund.
For mortgage foreclosures, Section 2329.44 requires the clerk of court to notify you by certified mail if surplus funds exist from the sale of your property. If the certified mail does not reach you, they must try ordinary mail. If that fails, they must publish notice in a local newspaper.
Who Holds the Money?
- Tax foreclosure surplus: Held by the County Treasurer, tracked by the County Auditor
- Mortgage foreclosure surplus: Held by the Clerk of the Court that issued the foreclosure
Key Deadlines
- 60 days: Tax sale surplus unclaimed after 60 days moves to the county treasury
- Three years: You must demand payment within three years or the tax sale surplus is permanently forfeited
- Three years: Mortgage foreclosure surplus is considered unclaimed after three years under Section 169.02
How to Claim Your Money
- Contact the County Auditor or Treasurer (for tax sales) or the Clerk of Court (for mortgage foreclosures) in the county where the property was located.
- Ask about surplus funds from your property's sale. Provide the property address, your name, and the sale date.
- Demand payment in writing. For tax sales, cite Section 5721.20. For mortgage foreclosures, the clerk must pay on demand under Section 2329.44.
- Bring your ID and proof of ownership — a deed, tax records, or foreclosure notices.
- Pay the small admin fee: For mortgage foreclosure surplus, the clerk may charge $25 (or $5 for balances under $25) for notification costs.
Why Ohio Is a Good State for Recovery
Ohio has a clear legal framework, a high volume of overages, mandatory notification procedures for mortgage foreclosure surplus, and no specific finder's fee caps for non-probate claims. The process is relatively straightforward if you know what to do.
One Caution: Probate Cases
If the original property owner has passed away, the claim may need to go through Probate Court, which adds complexity and requires court approval of any fees. Be prepared for additional steps in that scenario.
The Tyler v. Hennepin County Decision
In 2023, the U.S. Supreme Court issued a unanimous ruling in Tyler v. Hennepin County that governments cannot keep surplus proceeds from tax sales beyond what is owed, finding this violates the Takings Clause of the Fifth Amendment. This landmark decision has significantly strengthened property owners' rights to surplus funds across the country. As of 2026, laws in this area are evolving rapidly as states update their statutes to comply with this ruling. It is more important than ever to understand your rights and act promptly.
Get Free Help Today
AuctionBlock.org is a mission-driven company that helps Ohio property owners recover surplus funds at no charge. We can search for your surplus, guide you through the claim process, and make sure you do not miss the three-year deadline.
Contact AuctionBlock.org today — once those three years are up, the money is gone forever.
AuctionBlock.org is a mission-driven company providing surplus fund recovery assistance. This guide is for educational purposes only and does not constitute legal advice. Laws change frequently — always verify current statutes with a licensed attorney in your state. Last updated: April 2026.