Indiana Foreclosure Cases Rising: Why Surplus Awareness Is More Urgent Than Ever

Foreclosures Rise in Indiana—But Surplus Funds May Offer a Second Chance

Indiana counties are seeing a 20% year-over-year rise in foreclosure filings—a troubling trend that’s putting more families at risk of losing their homes. Yet amid this wave of distress sales, one important fact remains widely unknown: even after a home is sold at auction, surplus funds may still be available to the former homeowner or their heirs.

What are surplus funds?
Surplus funds—also called excess proceeds—are the remaining money from a foreclosure sale after the mortgage balance, taxes, and court fees have been satisfied. For example, if a property is auctioned for $220,000 but only $170,000 was owed, the $50,000 difference is considered surplus—and in most cases, it legally belongs to the former homeowner or their estate.

However, due to limited public outreach and confusing legal procedures, many Hoosier families walk away without ever claiming these funds. In some Indiana counties, surplus checks sit unclaimed for months or years—only to be turned over to the state or lost altogether due to missed deadlines and paperwork errors.

Here’s how Indiana residents can protect their financial future after a forced sale:

1. Check for available surplus funds. After a foreclosure, request a copy of the sale report or final judgment from the county clerk’s office to determine if excess proceeds remain.
2. Act quickly. Indiana law does not guarantee indefinite access to surplus funds. Time limits apply, and failure to file a timely claim can result in permanent forfeiture.
3. Open an estate if the homeowner has passed. Surplus funds can be claimed by heirs, but proper estate documents are required—especially if the property was still in the deceased homeowner’s name.
4. Consult a legal professional. Filing for surplus funds may require motions, affidavits, and court appearances. A qualified surplus fund recovery expert or attorney can help ensure the claim is properly handled.

At The Foreclosure Focus, we believe that losing a home shouldn’t mean losing everything. Our mission is to help Indiana homeowners understand their rights, navigate post-sale recovery options, and reclaim equity that often goes unnoticed.

With thousands of dollars potentially left on the table, Hoosier families deserve to know the truth: foreclosure is not the end—and surplus funds can provide a vital path to financial recovery.

Visit The Foreclosure Focus to download our free Indiana surplus funds guide and take the first step toward reclaiming what’s rightfully yours.