Mortgage Foreclosure Surplus Funds: Who gets the funds when there is a divorce?

Mortgage Foreclosure Surplus Funds: Who gets the funds when there is a divorce?

Recently, I’ve taken on a case where there are two parties seeking to file a claim for mortgage foreclosure surplus funds, however, they are divorced. This blog is to educate former Florida homeowners who are seeking to file a claim for mortgage foreclosure surplus funds when they have also been involved in a divorce.

First and foremost, mortgage foreclosure surplus funds are defined by Florida 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 foreclosure action in the amount of $100,000 and the property sells at a foreclosure auction for $150,000, then there will be a surplus of funds in the amount of $50,000 retained by the Clerk of Court! Per the same statute mentioned above, “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 after payment of subordinate lienholders who have timely filed a claim.” Meaning that, as the former Florida homeowner you are entitled to filing a claim for the $50,000 in Surplus Funds that were retained by the Court.

Now, in the instance where there are two parties who are filing a claim for the surplus funds, and they are divorced, it will be imperative to refer to their divorce decree. The divorce decree must be referred to as it will contain vital information as to who the subject property was awarded to in the divorce. If the property was to be sold with the proceeds divided equally, then both parties are entitled to the surplus funds and will have to split said funds equally. If the property was wholly awarded to one party, then said party is the only one entitled to the funds.

If you are reading this as a former Florida homeowner who is divorced and whose home has recently been sold at a Florida foreclosure auction and would like to know if 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 mortgage foreclosure surplus funds and have helped to claim hundreds of thousands 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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