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Where Do Florida Foreclosure Surplus Funds “Come From”?

When it comes to Florida foreclosure surplus funds there are not many people that are familiar with the topic. Oftentimes, Florida Judge’s need to be informed of and/or explained the law surrounding surplus funds. Furthermore, inexperienced Attorneys dealing with surplus funds can often make mistakes or even be confused of the laws surrounding said funds.

With that being said, Florida Statute 45.032(1)(c) officially defines Florida foreclosure surplus funds as “the funds remaining after payment of all disbursements required by the final judgment of foreclosure and shown on the certificate of disbursements.” In layman’s terms, Florida foreclosure surplus funds are the direct result of Third-Party Purchasers overbidding on a Florida property at foreclosure auction that results in an amount that exceeds the Final Judgment, or what is owed, to the Plaintiff in the foreclosure action that is attached to said property. Moreover, Fla. Statute 45.032(2) states “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.” An “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.” Therefore, meaning that the former Florida homeowner at the time the foreclosure action was initiated against the Florida property is entitled to the filing of a claim for a portion, or the entirety, of the surplus funds that may be available.

Here's an example of how foreclosure surplus funds come to be: If a final judgment of foreclosure is entered against a Florida property in a foreclosure action in the amount of $30,000 and the Florida property is sold at a Florida foreclosure auction to a Third-Party Purchaser in the amount of $100,000, then there will be a surplus of funds in the amount of $70,000 for the former Homeowner to claim!

***Third-Party Purchaser Beware***

If you are seeking to purchase a Florida property at foreclosure auction, then I strongly advise that you run a title search to ensure that there are no additional encumbrances on the subject property. Should you purchase the subject property and there be additional liens, you are not entitled to, or eligible, to file a claim for any of the surplus funds that may be available, per Florida Statute.

If you’re 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 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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