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Florida Foreclosure Surplus Funds: Third-Party Surplus Funds Recovery Companies, Can They be Trusted?

Today, we will be discussing third-party surplus funds recovery companies and whether they can be trusted to recover a former Homeowner’s surplus funds after the recent Florida foreclosure auction of their Florida property. From my experience in handling hundreds of Florida foreclosure surplus funds cases, I can honestly say that there are some surplus funds recovery companies that can be trusted but there are a majority that cannot be. Oftentimes, I’ve seen the horror of one of these companies recovering the surplus funds from the Court registry and disappearing, or dissolving, the next day with the former Homeowner’s money leaving them with absolutely nothing. Once, the money is disbursed to the third-party company by the Court, there is no way of getting it back. The cause of this is due to the former Homeowner signing what is known as an “Assignment of Interest” in order for the third-party company to intervene in the case to recover the surplus funds. By signing an “Assignment of Interest” the former Homeowner is effectively assigning away their rights to the surplus funds and re-assigning them to the third-party company. Thus, meaning that the former Homeowner no longer has a right to the surplus funds.

Furthermore, once a third-party surplus funds recovery company is hired by a former Homeowner, they will then hire their own attorney to go into the case to recover the surplus funds that are being held by the Court. It is important to note that the attorney being hired by the third-party company will not be representing the former homeowner; they will only be representing the third-party company in the case. As such, the third-party company’s attorney will only be representing the best interests of the third-party company and not the former Homeowners.

As you can see, it is often a gamble for a former Florida Homeowner to hire a third-party surplus funds recovery company to recover their surplus funds and it is not in their best interests. The best piece of advice I can give former Homeowners who are looking to file a claim for Florida foreclosure surplus funds is to always speak with an experienced Florida foreclosure surplus funds recovery attorney first. A former Homeowner can gain invaluable knowledge by speaking with an experienced Florida foreclosure surplus funds recovery attorney regarding their rights to surplus funds. Additionally, should a former Homeowner decide to hire an attorney directly to assist them with the recovery of their surplus funds, they can be sure that the attorney is representing their best interests as they pertain to said funds.

My final piece of advice is for a former Homeowner to know that Fla. Statute 45.032(2) states that “[t]here 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.” The “owner of record” is defined by Fla. Statute 45.032(1)(a) 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.” Meaning that, Florida former Homeowners are the ones entitled to a portion, or the entirety, of the surplus funds resulting from the Florida foreclosure auction of their Florida property.

If you’re reading this as a former Florida Homeowner whose been notified of the surplus funds available after the foreclosure sale of your Florida property or are unsure as to whether there are surplus funds available after the foreclosure sale, 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 Florida foreclosure 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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