Florida Foreclosure Surplus Funds: When, and Why Former Homeowners Contact an Attorney

Florida homes/Golf course

Today, we will be discussing when, and why former Homeowners should contact an Attorney should there be surplus funds resulting from the Florida foreclosure auction of their home. First and foremost, in Florida, when a Homeowner’s property is sold at foreclosure auction, whether it be due to a default in a mortgage or non-payment of their homeowners’ association dues, there is a chance for what are known as surplus funds to be available. According to Florida Statute 45.032(1)(c), 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.” Surplus funds are the result of third-party bidders, or purchasers, getting stuck in a bidding war for a certain property that results in the bid going over the amount that is owed in accordance with the Final Judgment that was entered in the foreclosure action.

For Example: If a final judgment of foreclosure is entered against a Florida property in a Florida foreclosure action in the amount of $50,000 and the property is sold at foreclosure auction in the amount of $100,000, then there will be a surplus of funds in the amount of $50,000 for the former Homeowner(s) to claim! Florida Statute 45.032(2) states “[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.” Therefore, meaning that the former Homeowner(s) is/are entitled to filing a claim for the surplus funds are available.

Moreover, if you are a former Homeowner and have been notified by the Clerk of Court’s office or have been contacted by one of those pesky Third-Party Surplus Funds Recovery Companies; then I strongly recommend that you speak with an experienced Florida Surplus Funds Recovery Attorney right away. The reason you should consult with an experienced Florida Surplus Funds Recovery Attorney is so that you can gain a better understanding of your rights as they pertain to the surplus funds as well as get an idea as to how the recovery process works. By now, a Third-Party Company has probably contacted you to solicit their services for you to hire them to “assist” you with the recovery of your surplus funds. However, what these companies don’t tell you is that you must sign a document known as an “Assignment of Interest.” This document effectively assigns your rights to the surplus funds over to the Third-Party Company. Further, hidden within said document as well as these companies’ agreements are substantially large hidden fees. Not to mention, these companies often hire their own attorney, once they’ve been hired by a former homeowner, who then files into the case to recover the surplus funds on behalf of said Third-Party Company and will also represent solely the company’s best interests. Once the funds are recovered, these Third-Party Companies will either dissolve or stop total contact with the former Homeowner(s) leaving them with nothing.

If you have been notified that there are surplus funds available after the Florida foreclosure auction of your property or it has been sold at Florida foreclosure auction and would like to know if there are surplus funds available to be claimed, 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 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.