Most of the time former Florida Homeowners who have had their Florida property sold at foreclosure auction are unaware of what is known as foreclosure surplus funds. Oftentimes, they are notified of said funds by what we call a Third-Party Recovery Company. Before we go into further detail, please allow me to explain what Florida foreclosure surplus funds are. Foreclosure surplus funds, according to Fla. Statute 45.032(1)(c), are “the funds remaining after payment of all disbursements required by the final judgment of foreclosure and shown on the certificate of disbursements.” Florida Statute 45.032(2) also 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…” What this means is that the former Florida homeowner is considered the “Owner of Record” as they were the owner of the subject property when the foreclosure action was initiated. As such, they are entitled to a portion, or even the entirety, of the surplus funds that may be available.
Here's an example of how surplus funds come to be: If a final judgment of foreclosure is entered against a Florida property in the amount of $50,000 and the Florida property is sold at a Florida 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 to claim!
Now back to Third-Party Surplus Funds Recovery Companies, these companies are often the ones that first notify the former Homeowner of the surplus funds that are available to them. These companies are able to notify the former homeowner first because these companies will stalk each Florida county’s foreclosure auction website in an attempt to locate cases where a property was purchased with a surplus remaining. They will then begin contacting the former Homeowner directly to solicit their services. Please beware these companies are not attorneys — Florida attorneys, per the Florida Bar, are not able to solicit their services to a prospective client otherwise they can face sanctions and/or reprimand from the Florida Bar. Moreover, Third-Party Surplus Funds Recovery Companies never adequately explain a former Homeowner’s rights to said surplus funds. Instead, these companies will rush to have the former Homeowner sign what is called an “Assignment of Interest.” Should a former Homeowner sign this document it is imperative that they understand that they are assigning away their right to said surplus funds to the Third-Party Company so that they can intervene in the case to recover the surplus funds. These companies often charge ridiculously high fees/percentages to recover said funds and once recovered will often disappear or dissolve without the former homeowner getting a penny and further deepening the wound of losing one’s home to foreclosure. Therefore, if you, as a former Homeowner, receive one of these documents, then I strongly advise that you consult with an experienced Florida foreclosure surplus funds recovery attorney right away and DO NOT SIGN anything. An experienced Florida foreclosure surplus funds recovery attorney can advise you of your rights to said surplus funds, provide a strategy as to how said funds can be obtained, and the amount of surplus funds that are available to be claimed. Additionally, former Florida Homeowners can be sure that an attorney is speaking to them and advising them with their best interests at mind.
Another way former Homeowners find out about surplus funds remaining after the Florida foreclosure sale of their Florida property is through the Clerk of Court, but this can take about ten (10) days. The Court notifies the former Homeowner of the surplus funds that are available by mailing out a Certificate of Disbursements to the former Homeowner’s last known address. If you receive a certificate of disbursements from the Court, then I advise you consult with an experienced attorney right away!
If you’re home has recently been sold at a Florida foreclosure auction and you 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.