Media Report Triggers Calls From F'closed Ex-Homeowners About Surplus Money From Public Sales, Forcing County Officials To Begin Cutting Refund Checks

In Denver, Colorado, The Denver Post reports:

• Dozens of former homeowners who lost their houses to foreclosure have been calling public trustee offices across Colorado to see whether they have any money coming to them. "We had no idea until we saw it in the newspaper," said Anthony Michaels of Denver, whose mother, 92-year-old Fayetta Curry, and his younger sister, Sharon Parker, were among a list of individuals due funds from a foreclosure auction.

• The Denver Post on Tuesday highlighted how county public trustees and treasurers have hundreds of thousands of dollars in unclaimed funds that belong to homeowners whose houses were sold at auction. Michaels' family members were among those eligible to collect more than $635,000 in unclaimed money but never knew it.

• Known as "overbid funds," the money comes from auction bids that exceeded the amount owed on the house at the time of the foreclosure. Counties are required by law to pay the homeowners after all eligible liens have been paid — but are not required to search for the homeowners, instead sending notices to their last known address, typically the foreclosed house they were forced to leave.

• Other times, the homeowners have died, and county officials have no next of kin listed in foreclosure papers. Counties get to keep the money if it remains unclaimed for five years from the date of the foreclosure sale.

• The Post published a shortened list of those owed at least $10,000, prompting a slew of telephone calls to trustee offices, according to interviews. "We have had numerous calls and e-mails about the overbid funds," Arapahoe County Public Trustee Ana Maria Peters-Ruddick said, noting the treasurer has issued checks as high as $50,000 as a result. Arapahoe Treasurer Sue Sandstrom's office has issued checks totaling more than $100,000 to three families due foreclosure funds as of Friday.

• Denver County is expecting to issue checks totaling more than $85,000 to three families over the next week or so, and Adams County officials said they expect to issue more than $100,000 in checks to at least four families due funds.

• Michaels' mother is a resident of a state veterans home near Denver, and his sister is convalescing at a medical-care facility. Neither knew they were entitled to the $33,212 held by the Denver County public trustee from the auction of the family's Park Hill home. That's probably because the city was mailing the notices to the wrong address — three blocks away, records show.

• "We looked up one day, and the house was gone, foreclosed," said Michaels, 62. "My sister got behind on it and didn't say anything, and things just happened." The money will help settle some pressing family bills, Michaels said. Homeowners should check with the county public trustee who auctioned their house to see whether they are entitled to any funds.

Source: Foreclosed homeowners get unexpected windfalls.