In today’s post, we will be discussing two of the biggest differences between Florida Tax Deed Foreclosure Surplus Funds and Florida Mortgage Foreclosure Surplus Funds.
First and foremost, the biggest difference between these types of surplus funds is how they come to be. According to Fla. Statute 197.582(2)(a), “If the property is purchased for an amount in excess of the statutory bid of the Certificateholder, the surplus must be paid over and disbursed by the clerk as set forth in subsections (3), (5), and (6).” In layman’s terms, surplus funds from a tax deed foreclosure sale are the result of a property being purchased for more than what is owed on to a tax deed Certificateholder at a tax deed foreclosure auction. In contrast, Fla. Statute 45.032(2)(c) states that mortgage foreclosure surplus funds are “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 mortgage 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!
The second big difference between Florida Tax Deed Foreclosure Surplus Funds and Florida Mortgage Foreclosure Surplus Funds is the deadline that Subordinate Lienholders have to file a “timely claim.” When it comes to tax deed foreclosure surplus funds Subordinate Lienholders only have 120-days to file a timely claim. However, when it comes to mortgage foreclosure surplus funds Subordinate Lienholders have up to 1-year to file a timely claim. Should the Subordinate Lienholders in either action fail to a file a timely claim within the established timeframe, then the surplus funds will be disbursed in whole, or in part, to the Claimants who have filed a timely claim.
Lastly, please note that you, as the former Homeowner, are entitled to filing a claim for Florida foreclosure surplus funds after a Florida Tax Deed Foreclosure or Florida Mortgage Foreclosure auction of your Florida property, if any, per Fla. Statutes 197.582(2)(a) and 45.032(1)(a). If you are reading this as a former Florida Homeowner and are seeking assistance in the filing of your claim for Florida foreclosure surplus funds, then please give me a call and I will personally give you a free consultation. During our consultation, I will confirm whether or not 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 will go about the claim filing process.
At Haynes Law Group, P.A., we have experienced Attorneys who are well versed in the Florida statutes governing former Florida Homeowners claims to 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. Best of all, we represent our clients on contingency which means we don’t get paid unless you do!