Florida Foreclosure Surplus Law: A Third Party Is Not Entitled to Surplus Funds

I am contacted about once a week from third-party purchasers that would like to make a claim to surplus funds. My answer is always the same, “you are not entitled to any surplus funds.” Most people hate hearing that, but being transparent is very important for many reasons.

If you are a third-party purchaser, do not pay any money to a third party “surplus recovery” company to try and get these funds for you. There is not one statute or case in Florida, to date, that allows for such a recovery. Here is the reasoning for it, if someone is the high bidder at the foreclosure sale, but then they can collect the surplus funds, then people could offer whatever amount knowing they will get the property and their money back. This is the logic behind the law.

More recently, the 5th District Court of Appeal in Florida in Rodriguez v. FNMA, So.3d 2017 WL 2730090 held that a third-party purchaser was not entitled to any surplus funds, even if a homeowner failed to make a claim within 60 days of the foreclosure sale. This has been the consistent law in Florida.

Here is why you should hire a foreclosure surplus lawyer from the start of your case. If a trial court enters an order giving the funds to a third party, and then you appeal that decision, you would most likely win. Yet, what if the court already issued the check for the money before you appealed? Good luck getting the money back from the 3rd party company.

I all too often am seeing people lose their surplus funds case due to bad lawyering and awful surplus recovery companies. Hire a foreclosure surplus attorney that knows the law and can prove it. You do NOT need to hire a third-party company. Do NOT assign away your rights. Hire a lawyer to represent your rights.

I handle foreclosure surplus cases all over the State of Florida. It is my goal to bring knowledge to the State, but more importantly to help people collect the funds they are entitled to!

Call me, today. I will give you a free consultation. If you decide to hire me, I will only get paid if I win for you.

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