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Florida Foreclosure Surplus Funds: What Are My Rights as a Former Homeowner?

If you are reading this, then it is likely that you are a former Florida homeowner whose property was sold at a Florida foreclosure auction and have been notified by the Clerk of Court that there are surplus funds available for you to claim. Allow me to be the first to advise you of your rights to said surplus funds in accordance with Florida Statutes. According to Fla. Statute 45.032(2), “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.” Florida Statute 45.032(1)(a) defines an “Owner of Record” 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.” Therefore, meaning that you as the former homeowner are entitled to a portion, or the entirety, of the surplus funds that are available.

Here are two scenarios regarding surplus funds and what you may be entitled to:

  1. If a Final Judgment is entered in a Florida foreclosure action in the amount of $30,000 and the property sells at a 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 are not any subordinate lienholders involved in the case.
  1. If a Final Judgment is entered in a Florida foreclosure action in the amount of $30,000 and the property sells at a 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. In this scenario, 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 $100,000 for the former Homeowner to claim!

Moreover, if a former homeowner is contacted by a Third-Party Surplus Funds Recovery Company regarding surplus funds being available for them to claim; then I strongly recommend that said former homeowner consult with an experienced Florida foreclosure surplus funds recovery attorney right away. I say this because these companies usually mislead former homeowners and charge ridiculously high recovery fees. Additionally, it is important for former Florida homeowner’s to further their knowledge when it comes to their rights to Florida foreclosure surplus funds and how they can be affected by a Third-Party Surplus Funds Recovery Company. Furthermore, these companies will oftentimes have former homeowners assign away their rights to THEIR surplus funds and re-assign them to the surplus funds recovery company.

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 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 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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