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Florida Foreclosure Surplus Funds: Why You Should Hire An Attorney

When it comes to Florida foreclosure surplus funds, former homeowners should always consult with an experienced Florida foreclosure surplus funds recovery attorney. The reasoning behind this is so that they can understand their rights when it comes to said funds and so that they can make the most informed decision when choosing how they wish to file their claim.

First and foremost, it is important for former homeowners to know that Fla. Statute 45.032(2) 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…” This same statute 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, if you are a former homeowner and are contacted by a Third-Party Surplus Funds Recovery it is imperative that you DO NOT SIGN anything. Third-Party Surplus Funds Recovery Companies often have former Homeowners sign a document known as an Assignment of Interest that assigns away their right to the surplus funds and re-assigns their rights to the surplus funds recovery company. Now, should a former Homeowner consult with and hire a surplus funds recovery attorney, then they will not have to fear this as the attorney will not need the former homeowner to assign away their rights in order to assist with the recovery of the former homeowners’ surplus funds.

Moreover, Third-Party Surplus Funds Recovery Companies are also known to charge ridiculous fees that leave the former homeowner with little to none of the surplus funds that were originally available. Additionally, some of these companies will dissolve, or disappear, as soon as the surplus funds are disbursed to their office by the Court. Thus, leaving the former Homeowner with nothing despite recently just losing their home to foreclosure auction.

On the other hand, Florida Attorneys are bound by a code of ethics set forth by the Florida Bar and must represent the best interests of their clients. As such, if a Florida attorney does not represent the former homeowners’ best interests, then the former homeowner can file a complaint with the Florida Bar and the attorney can face sanctions such as public reprimand, fines, or even the loss of their license to practice law in the state of Florida.

Moving on, it is also important for a former homeowner to know that not all surplus funds recovery cases are straightforward. In fact, most surplus funds recovery matters can be quite complex. An example of this is when there are competing claims that are filed by subordinate lienholders. Should competing claims be filed, then the Court will require what is known as an “Evidentiary Hearing,” according to Fla. Statute 45.032(3)(b). During said hearing, a judge will determine the priority, in which, the surplus funds are to be disbursed to the parties who have filed a timely claim. Usually an experienced Florida foreclosure surplus funds recovery attorney can circumvent the need for an evidentiary hearing by reaching out to the subordinate lienholder’s attorneys in an attempt to reach an agreement. By reaching an agreement with the subordinate lienholder’s attorney in advance of the evidentiary hearing, the attorney will be limiting the amount of extra fees the subordinate lienholder will incur that they otherwise would have requested at the hearing that would’ve resulted in less funds being disbursed to the former Homeowner. Most importantly, reaching an agreement can potentially

expedite the disbursement of the surplus funds to the former homeowner (depending on the speed of the Clerk of Court).

If you are reading this as a former Florida Homeowner whose home has recently been sold at a Florida foreclosure auction and there are surplus funds available for you to claim, then please give me a call and I will personally give you a free consultation. During our consultation, I will answer any questions that you may have and will also provide you with a personalized strategy as to how we can assist you with the filing of your claim.

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