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Florida Condominium Foreclosure Sales and Surplus Funds

Most Florida Condominium (Condo.) Homeowners are unaware of this, but should their condo be sold at a Florida foreclosure auction whether it be from a mortgage or Condominium Owners’ Association (COA) there may be a chance that there what is known as surplus funds available for the former Condo. Homeowner to claim. In Florida, 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” (according to Fla. Statute 45.032(1)(c)). This same statute 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 after payment of subordinate lienholders who have timely filed a claim.” As such, the “owner of record” at the time a condo. mortgage or COA foreclosure action is filed would be the former Condo. Homeowner. Therefore, the former Condo. Homeowner would be entitled to filing a claim for a portion, or the entirety, of the surplus funds that are available depending on whether there are Subordinate Lienholders who have field a timely claim.

For example: If a Final Judgment is entered in a Florida condo. mortgage or COA foreclosure action in the amount of $30,000 and the property is sold at foreclosure auction for $150,000, then there will be a surplus of funds in the amount of $120,000 retained by the Clerk of Court. If there is a Subordinate Lienholder with a valid lien in the amount of $20,000 and they file a timely claim, then the subordinate lienholder will be entitled to a disbursement of the surplus funds that are available. Thus, leaving a remaining balance of $100,000 in the Court registry for the former Condo. Homeowner to claim!

If you are reading this as a former Florida Condo. Homeowner whose home has recently been sold at a condo. mortgage or COA foreclosure auction and would like to know whether there are surplus funds available for you to recover, 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 recovered as well as answer any questions that you may have. If there are surplus funds available to be recovered, then I will also provide you with a personalized strategy as to how we can assist you with the recovery of YOUR surplus funds.

At Haynes Law Group, P.A., we have experienced Attorneys who are well-versed in the Florida statutes governing Florida homeowners’ claims to Florida foreclosure surplus funds and have helped to recover 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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