Florida Foreclosure Surplus Funds: How Are the Funds Split Between Parties That Have Been Divorced?

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I recently had a consultation with a former homeowner who was looking to file a claim for Florida foreclosure surplus funds. However, they were divorced. My first question to the former Homeowner was how the property was divided during their divorce or whether said property was fully awarded to one of the parties. The reason I ask this is crucial. If the parties were given an even 50/50 split of the subject property, then the surplus funds will have to be split between the two parties evenly. Should the subject property have been awarded to only one of the parties, then that party would be the sole party entitled to the surplus funds that are available. The reason for this is due to Fla Statute 45.032(2) which 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.” The “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.” Thus, why it is crucial to know which party in the divorce was awarded the property or if the property was evenly split between them.

Moreover, when it comes to two divorced parties seeking to recover Florida foreclosure surplus funds it is always easier for the parties to come to an agreement prior to filing their claim. The reason being is that it can expedite the process of recovering the surplus funds as long as there are no subordinate lienholders with a valid claim. Otherwise, should the divorced parties not be able to find common ground then it will delay the process and the Judge will require what is known as an “Evidentiary Hearing” to determine the priority in which the funds are to be disbursed. If a Hearing is required, then we will be at the mercy of the Judge’s hearing availability for such matters — depending on the Judge’s availability it can be weeks or even months before the matter is heard. Furthermore, once the hearing takes place it can take a couple more weeks for the Clerk to disburse said funds based on how busy they’re office is. Therefore, I always recommend that divorced parties come to an agreement prior to the filing of a claim for Florida foreclosure surplus funds. What I do not recommend doing is hiring a Third-Party Surplus Funds Recovery Company to assist you with the filing of your claim. If you have been contacted by one of these companies, then I strongly advise that you consult with an experienced Florida Foreclosure Surplus Funds Recovery Attorney right away and DO NOT SIGN ANYTHING.

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.

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