Florida Tax Deed Foreclosure Sales and Surplus Funds

downtown Jacksonville

In this blog, we will be discussing Florida Tax Deed Foreclosure Sales and how they can result in surplus funds. First and foremost, in Florida, when a homeowner becomes delinquent on their taxes, the tax collector can sell what is known as a tax certificate to the public at public auction. This, however, is not the Tax Deed foreclosure sale — this is merely the first step which creates a tax lien on the subject property. When a tax certificate is purchased at public auction, the holder of said certificate “at any time after 2 years have elapsed since April 1 of the year of issuance of the tax certificate and before the cancellation of the certificate, may file the certificate and an application for a tax deed with the tax collector of the county where the property described in the certificate is located,” per Florida Statute 197.502(1). Meaning that Florida Homeowners who are delinquent on their property taxes will have two years from the date that the certificate holder purchased the tax certificate to cure, or payoff, their delinquent taxes. Should the Homeowner(s) not cure their delinquency, then their property will be sold at public auction, otherwise known as, a Florida Tax Deed Foreclosure Auction.

Being a Homeowner and facing the potential foreclosure of your property can be nerve-wracking and most, if not all, may feel helpless, especially when the circumstances for said foreclosure are out of their control. Please allow me to be the first to say that there may be some light at the end of this dark tunnel. I say this because there is a chance of there being known what are known as “Surplus Funds” after the foreclosure of your property. Florida Statute 197.582(2)(a) states “[i]f the property is purchased for an amount in excess of the statutory bid of the certificate holder, the surplus must be paid over and disbursed by the clerk as set forth in subsections (3), (5), and (6).” This same statute further sets out “[i]f there remains a balance of undistributed funds, the balance must be retained by the clerk for the benefit of persons described in s. 197.522(1)(a), except those persons described in s. 197.502(4)(h), as their interests may appear.”

For Example: If the amount to fully payoff the delinquent property taxes is $10,000, and the property is sold at auction for $50,000, then there will be a surplus of funds in the amount of $40,000 available to be claimed by YOU, the former Homeowner(s)! The cause for this is due to third-party bidders, or purchasers, getting into a bidding war for a certain property that results in the final bid going over the amount that was owed.

If you’re reading this and your property has been sold at a Florida Tax Deed Foreclosure Auction and are wondering whether 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. A word of caution if you are contacted by a Third-Party Surplus Funds Recovery Company looking to “assist” you with the recovery of your surplus funds, please DO NOT sign anything until you have consulted with an experienced Florida Surplus Funds Recovery Attorney.

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.