Subordinate Lienholders and Florida Mortgage Foreclosure Surplus Funds

Representing Homeowners

Today, we will be discussing Subordinate Lienholders and what they are when it comes to Florida mortgage foreclosure surplus funds. According to Florida Statute 45.032(1)(b), Subordinate Lienholders “means the holder of a subordinate lien shown on the face of the pleadings as an encumbrance on the property.” This same statute goes on to determine Subordinate Lienholders as “a subordinate mortgage, judgment, tax warrant, assessment lien, or construction lien.” Therefore, meaning that if there is a 2nd Mortgage, a lien for unpaid property taxes, a lien from a Homeowner’s and/or Condominium Association, or construction lien from a fence and/or roofing company; then they will be treated as Subordinate Lienholders eligible to file a claim for a portion, or the entirety, of the surplus funds that are available depending on the amount that is owed to them and if they have filed a timely claim. Florida case law and Fla. Statute 45.032(3)(c) determine a timely claim to be “one year after the sale…” After one year has passed, then a Subordinate Lienholder will no longer be eligible to file a claim for the surplus funds. An example of a scenario in which there is a Subordinate Lienholder who is eligible to file a claim for a portion of a former Florida Homeowner’s surplus funds can be found below.

Example: If a Final Judgment is entered in a Florida foreclosure action in the amount of $30,000 and the property is sold at 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 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 you are reading and looking to file a claim for Florida foreclosure surplus funds but there are Subordinate Lienholders that may have an eligible claim; 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 provide you with a personalized strategy as to how we can assist you in 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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