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What happens if a Subordinate Lien Holder is defaulted during foreclosure proceedings and there are Florida Foreclosure Surplus Funds remaining after the Florida foreclosure auction of a Florida Property?

Today, we will be discussing what happens when a Subordinate Lien Holder is defaulted during foreclosure proceedings and there are foreclosure surplus funds retained by the court registry after the foreclosure auction of a Florida property.

If a Subordinate Lien Holder is defaulted prior to the Florida auction of a Florida property during foreclosure proceedings, then they will not be able to file a claim, or recover, any portion of the surplus funds that may be retained by the court registry. Florida Rules of Civil Procedure 1.500 (c) Right to Plead clearly states “A party may plead or otherwise defend at any time before default is entered. If a party in default files any document after the default is entered, the clerk must notify the party of the entry of the default. The clerk must make an entry on the progress docket showing the notification.” The Florida Rules of Civil Procedure are protected by Florida’s Constitution. Therefore, the surplus funds will be protected under said Constitution should a defaulted Subordinate Lien Holder attempt to file a claim, or recover, surplus funds resulting from the sale of a Florida property at a Florida foreclosure auction. This is why you will often see Subordinate Lien Holder’s hire an attorney to file a pleading during the initial foreclosure action, prior to the foreclosure sale, to preserve their right to later file a claim for surplus funds should there be any retained by the court registry.

If you are reading this as a former Florida Homeowner 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. If you have been contacted by “Third-Party Surplus Funds Recovery Companies,” then I recommend that you consult with an experienced Florida surplus funds recovery attorney right away; and DO NOT sign anything!

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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