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Florida Foreclosure Surplus Funds: What Happens if the Funds are Disbursed in appropriately to Divorced Parties?

In today’s blog, we’ll be discussing what happens if foreclosure surplus funds are wrongly disbursed to certain parties who are divorced. I recently took on a case in which the Court was wrongly advised that there was only one owner of a certain property that was sold at a foreclosure auction. However, there was in fact a second owner (who is the ex-spouse of the initial claimant and who was also entitled to a portion of the surplus funds) but was left off the initial claimant’s filed pleadings claiming said surplus funds. Thus, the Court, being ill-advised, disbursed the entirety of said surplus funds to the one owner.

Florida Statute 45.032(2) states that “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.” Florida Statute 45.032(1)(a) defines an owner of record 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.” In this instant case, both parties were the legal title owners of the subject property at the time that the lis pendens was filed despite having gotten a divorce prior to the foreclosure sale. Therefore, both parties were entitled to a portion of the surplus funds. As such, I had to file a motion to have the surplus funds re-deposited with the Court registry and re-disbursed to the divorced parties accordingly. Upon the filing of my motion, a hearing was scheduled and conducted on the same. During the hearing, the Judge agreed with my position and an order was entered granting my motion.

As you can see, filing one’s claim for Florida foreclosure surplus funds can be tricky especially when the parties are divorced. This is why I always advise that former homeowners consult with an experienced Florida foreclosure surplus funds recovery attorney prior to moving forward with the filing of their claim. If you are a former Florida Homeowner whose home has recently been sold at a Florida foreclosure auction and are seeking assistance with the filing of your 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 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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