Indiana at a glance
Checked against the sources cited, 2026-09-19
| Topic | What the law says, and where it says it |
|---|---|
| How foreclosure works here | Indiana mortgage foreclosures go through the court. A mortgage cannot give the lender the power to sell the property on its own; the lender must file a foreclosure case in the county where the real estate is located, and the property is sold at a sheriff's sale under the court's judgment. Ind. Code § 32-29-1-3; Ind. Code § 32-30-10-3(a) Show the source textmay not authorize the mortgagee to sell the mortgaged property. The sale of mortgaged property by the mortgagee may only be made under a judicial proceeding. |
| Who holds foreclosure surplus | The sheriff pays out the sale proceeds in the order set by statute: sale expenses first, then the mortgage debt, interest and costs. If the sale brings in more than those amounts, the surplus must be paid to the clerk of the court, and the court directs its transfer to the mortgage debtor, the debtor's heirs, or other persons assigned by the mortgage debtor. Ind. Code § 32-30-10-14; Ind. Code § 32-29-7-9(b) Show the source textthe 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 |
| Claim window for foreclosure surplus | The foreclosure statute does not set a deadline to ask the court for surplus held by the clerk. Separately, Indiana's unclaimed property law presumes property held by a court to be abandoned three years after it becomes distributable, after which it is handled through the state's unclaimed property program. Ind. Code § 32-30-10-14; Ind. Code § 32-34-1.5-4(9) Show the source textFor property held by a court, including property received as proceeds of a class action, three (3) years after the property becomes distributable. |
| Tax sale excess proceeds | At an Indiana tax sale the buyer receives a certificate of sale, and the owner can usually redeem for one year after the sale (120 days in some cases); if there is no redemption a tax deed is issued. Any amount bid above the taxes, penalties and costs goes into the county's tax sale surplus fund. The owner of record when the property was certified for sale may file a verified claim with the county auditor. If the money is not claimed within three years after the county received it, it is transferred to the county general fund and can no longer be paid out. Ind. Code § 6-1.1-24-7(a), (c), (f); Ind. Code § 6-1.1-25-4(a) Show the source textshall be transferred by the county auditor to the county general fund and may not be disbursed under subsection (c) if it is not claimed within the three (3) year period after the date of its receipt |
| Redemption after the sale | No. An owner can redeem before the sheriff's sale by paying the judgment, interest and costs, but Indiana law says every mortgage foreclosure sheriff's sale is made without a right of redemption afterwards. Tax sales are different: most tax sale property can be redeemed for one year after the sale. Ind. Code § 32-29-7-9(b); Ind. Code § 32-29-7-7; Ind. Code § 32-29-7-13; Ind. Code § 6-1.1-25-4(a) Show the source textEvery sale made under this chapter is made without right of redemption. |
| Rules for recovery companies | Indiana limits what anyone may charge to recover tax sale surplus for an owner. An agreement whose main purpose is to pay someone to locate or recover money in the tax sale surplus fund is valid only if the fee is not more than 10 percent of the amount collected, and the agreement is in writing, signed by the owner, and states the amount in the fund and the owner's share after the fee. A person claiming under such an agreement, or as attorney-in-fact, can be paid only as directed by the court, on a petition filed within three years after the sale. The Attorney General enforces the rule. For property held by the state unclaimed property program, a recovery agreement is void if signed within 24 months after the property was turned over to the Attorney General, and a fee above 10 percent of the amount collected is treated as unconscionable. Ind. Code § 6-1.1-24-7.5(b)-(d); Ind. Code § 6-1.1-24-7(d), (e); Ind. Code §§ 32-34-1.5-74, 32-34-1.5-75 Show the source textrequires payment of compensation of not more than ten percent (10%) of the amount collected from the tax sale surplus fund with respect to the real property, unless the amount collected is fifty dollars ($50) or less |
How surplus funds arise in Indiana
When a home in Indiana is sold at a foreclosure sale or a tax sale for more than the debt and the costs of the sale, the money left over is surplus funds, also called excess proceeds or overage. It does not belong to the lender or to the buyer. Liens recorded behind the foreclosed debt are paid first, and what remains belongs to the former owner or to the owner's heirs. Read surplus funds explained for the general rules and liens and competing claims for the order of payment.
How a claim moves in Indiana
We confirm the sale figures in the public record, identify which office in Indiana is holding the money, and prepare and file the claim the way that office requires, advancing the costs. Because we bring the whole record with us, the claim does not stall on a missing document, a competing name or a missed date. See how to qualify for what we handle and what you provide. Notices about surplus are usually mailed to the last address on record, which is often the home that was sold, so do not wait for a letter. In Indiana that program is the Indiana Unclaimed Property (Office of the Indiana Attorney General).
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, Indiana law may allow a simplified procedure, or a probate court may need to appoint a personal representative. See estate and heir recovery and probate assistance.
Working with a recovery company in Indiana
Indiana regulates this kind of service. Indiana limits what anyone may charge to recover tax sale surplus for an owner. An agreement whose main purpose is to pay someone to locate or recover money in the tax sale surplus fund is valid only if the fee is not more than 10 percent of the amount collected, and the agreement is in writing, signed by the owner, and states the amount in the fund and the owner's share after the fee. A person claiming under such an agreement, or as attorney-in-fact, can be paid only as directed by the court, on a petition filed within three years after the sale. The Attorney General enforces the rule. For property held by the state unclaimed property program, a recovery agreement is void if signed within 24 months after the property was turned over to the Attorney General, and a fee above 10 percent of the amount collected is treated as unconscionable. (Ind. Code § 6-1.1-24-7.5(b)-(d); Ind. Code § 6-1.1-24-7(d), (e); Ind. Code §§ 32-34-1.5-74, 32-34-1.5-75)
Any agreement you sign, with us or with anyone else, has to follow that rule.
No out-of-pocket expense. Our only payment is a completion fee taken from the surplus once it is recovered. Where your state requires a licensed attorney for a court or probate filing, a licensed attorney handles it, and you still pay nothing out of pocket. Before you sign with anyone, read what a surplus funds scam looks like.
Questions about surplus funds in Indiana
Enough to prove who you are and how you held the property: identification, the deeds, any notice you received, and, if the owner has died, the estate paperwork. We do the rest for Indiana, from locating the funds to filing the claim.
The sheriff pays out the sale proceeds in the order set by statute: sale expenses first, then the mortgage debt, interest and costs. If the sale brings in more than those amounts, the surplus must be paid to the clerk of the court, and the court directs its transfer to the mortgage debtor, the debtor's heirs, or other persons assigned by the mortgage debtor.
No out-of-pocket expense. We advance the costs and are paid a completion fee from the surplus only after it is recovered. Where a court or probate filing requires a licensed attorney, a licensed attorney handles it.