Florida's Top Foreclosure Surplus Funds Recovery Lawyer's Tip of The Week

Collecting surplus funds in Florida can be tricky at times. Each county in Florida has different procedures on how foreclosure surplus funds are processed. For instance, some counties disburse funds in one week, while others can take up to a month. Also, some counties will require certain criteria while filing an owner’s claim for surplus funds.

However, Florida law requires certain evidence throughout every county in Florida in order for a former owner to collect the surplus funds. For example:

1) Who was the owner of record at the time of the lis pendens being filed?

Florida Statute 45.032 states the “owner of record” is the person or persons who appear to be the owners of the property on the date of the filing of the lis pendens. This means the start of the foreclosure proceeding.

This statute was enacted because owners were being scammed out of their surplus funds. Many surplus recovery companies and other fraudulent people were having owners quit claim deed their interest in the property after the foreclosure had already been filed, but before the foreclosure auction. Then, once the foreclosure sale occurred, these people would claim to be the “owners” of the property. Well, the Florida Legislature took care of that issue through Florida Statute 45.032.

This also means that if you do quit claim deed your property after the foreclosure proceeding is commenced, but before the foreclosure sale, you are most likely entitled to the surplus funds. I have seen this play out many times.

2) Can an heir collect surplus funds without having to go through probate?

YES! I have handled hundreds of surplus cases through the state of Florida. As an heir to an estate that has not been probated, Florida Statute 45.033 will dictate that an “involuntary transfer” occurs to the heirs. This means that the right to the surplus funds transfer to the heirs from the owner. Now, this is a tricky and skilled argument that needs to be made to the judge. However, I have been successful at collecting hundreds of thousands of dollars for heirs and avoiding probate, thus, avoiding additional fees and openings for other potential creditors.

I hope you have enjoyed these surplus funds recovery “tips”. As always, the biggest tip I can give you is NEVER assign away your surplus recovery rights to an asset recovery company.

If you have a surplus recovery funds case in any county in Florida, I am happy to answer any questions you have for free. Give the Haynes Law Group a call today!

Categories: