Florida Foreclosure Surplus Funds: Homeowners’ Association and/or Condominium Association Foreclosure Sales

Representing Homeowners

Today, we will be discussing Florida Homeowners’ Association (HOA) and Condominium Owner’s Association (COA) foreclosure sales. First and foremost, yes, your HOA and/or COA can foreclose on your property should you fail to pay your member dues or assessments. Florida Statute 720.3085(1)(c) states “The association may bring an action in its name to foreclose a lien for assessments in the same manner in which a mortgage of real property is foreclosed…” Since Florida HOA’s and/or COA’s can foreclose on a Florida property “in the same manner in which a mortgage” can this means that there is the possibility for what is known as “surplus funds” to be available after the foreclosure sale. Surplus funds are defined by Fla. Statute 45.032(1)(c) as “the funds remaining after payment of all disbursements required by the final judgment of foreclosure and shown on the certificate of disbursements.”

For example: If a Final Judgment is entered in a Florida HOA or COA foreclosure action in the amount of $15,000 and the property sells at a foreclosure auction for $150,000, then there will be a surplus of funds in the amount of $135,000 retained by the Clerk of Court! According to Fla. Statute 45.032(2), “there is established a rebuttable legal presumption that the owner of record on the date of the filing of a lis pendens is the person entitled to surplus funds…” Owner of Record is defined by Fla. Statute 45.032(1)(a) as “the person or persons who appear to be owners of the property that is the subject of the foreclosure proceeding on the date of the filing of the lis pendens.”

Therefore, if you are the legal title owner of the subject property at the time of your HOA’s or COA’s filing of a lis pendens and your Florida property is sold at foreclosure auction, then you are entitled to a portion, or the entirety, of the surplus funds, if any, that are remaining after said auction. Please be advised, however, that not every HOA and/or COA foreclosure sale results in surplus funds. If you are one of the lucky few who have been notified that there are surplus funds available after the HOA or COA foreclosure sale of your Florida property, then I strongly advise that you consult with an experienced Florida foreclosure Surplus Funds Recovery Attorney right away! If you are contacted by a Third-Party Surplus Funds Recovery Company, please DO NOT SIGN anything until you have spoken with an attorney regarding your rights to said surplus funds.

If you are reading this as a former Florida homeowner whose home has recently been sold at a Florida HOA or COA foreclosure auction and would like to know whether there are surplus funds available for you to claim, then please give me a call and I will personally give you a free consultation. During our consultation, I will confirm whether there are surplus funds available to be claimed as well as answer any questions that you may have. If there are surplus funds available to be claimed, then I will also provide you with a personalized strategy as to how we can assist you with the filing of your claim.

At Haynes Law Group, P.A., we have experienced Attorneys who are well-versed in the Florida statutes governing former Florida homeowners’ claims to Florida HOA and/or COA foreclosure surplus funds and have helped to claim millions of dollars for former Florida homeowners. We represent former homeowners all over the state of Florida no matter which county they are in and will work tirelessly to ensure that you receive the Gold Standard of Legal Service.

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