HB2878 Summary

• Allows property owners or certificate of purchase holders to request courts determine whether selling property to recover excess proceeds is reasonable during judicial foreclosure actions.

• Establishes that excess proceeds sales are reasonable if property sale price is likely to exceed $2,500 above the total costs (filing fees, tax lien amount with 16% interest, statutory fees with 16% interest, other state liens, and sale costs).

• Requires certificate of purchase holders to provide detailed cost information and property owner to provide market value estimates to courts for excess proceeds determination.

• Directs sales to occur within 60 days of judgment and specifies that remaining proceeds after costs and liens are distributed to the property owner whose redemption right was foreclosed.

• Adds requirement that qualified entities distribute excess proceeds sale funds within 90 days and notify courts of distribution completion, with interest penalties for non-compliance.