SB 623 Modifies provisions relating to foreclosure proceeds
Sponsor: Crawford
LR Number: 4359H.03C Fiscal Notes
Committee: Insurance and Banking
Last Action: 6/1/2018 - Signed by Governor Journal Page: S2504
Title: HCS SCS SB 623 Calendar Position:
Effective Date: August 28, 2018
House Handler: Plocher

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Current Bill Summary

HCS/SCS/SB 623 - Under current law, any surplus proceeds from a foreclosure sale of real estate are placed in the county treasury, for a term of three years, in trust for the publicly recorded owner of the property at the time of the delinquent land tax auction. This act modifies that provision such that surplus funds shall be distributed first to any recorded lien holders prior to being distributed to the owner. If after three years any funds have not been distributed such funds shall become a permanent school fund for the county. Furthermore, the term for which the proceeds shall stay in the county treasury is modified to be the lesser of 3 years or 90 days following the expiration of the redemption period.

The act provides a process for recorded lien holders and owners to show proof of their claims prior to receiving any funds. Furthermore, if more than one party makes a claim to the surplus funds and they cannot come to an agreement satisfactory to the county commission, the county commission shall petition the circuit court for interpleader.

This act is identical to SCS/HCS/HB 1251 (2018) and substantially similar to HCS/HB 649 (2017).