What are Florida Foreclosure Surplus Funds?

person in meeting, wooden home, gavel

Today, I want to touch on a topic that is not often discussed when a Florida Homeowner is facing the potential foreclosure of their property. When a Florida property is sold at a foreclosure auction, whether it be at a Homeowners’ Association or Mortgage Foreclosure auction, there is always a chance that there are what are known as surplus funds to be available after said auction. Surplus funds are the direct result of third-party bidders, or purchasers, getting stuck in a bidding war for a certain property that results in the bid going over the amount that is owed in accordance with the Final Judgment that was entered in the foreclosure action. Florida Statute 45.032(1)(c) defines 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.” Florida Statute 45.032(2) further sets out “[t]here 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…” Thus, meaning that you as the former homeowner are entitled to a portion, or the entirety, of the surplus funds that are available.

For example: If a final judgment of foreclosure is entered against a Florida property in a Florida foreclosure action in the amount of $50,000 and the property is sold at 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(s) to claim!

Chances are that you’re reading this because you have already been notified of the surplus funds available to you by one of those pesky Third-Party Surplus Funds Recovery Companies. If you have been contacted by one of these companies, then I strongly recommend that you ignore them and do not sign anything until you have spoken with an experienced Florida Foreclosure Surplus Funds Recovery Attorney. By speaking to an experienced attorney, you can gain valuable knowledge as to your rights and how they pertain to surplus funds. Furthermore, each foreclosure surplus funds recovery case is different and can become quite complex depending on the different parties involved. Most, if not all, Third-Party Surplus Recovery Companies are not equipped to take on the complexities of a majority of these cases. Further, once hired, these companies will then turnaround and hire their own attorney to represent their company and their own best interest as it pertains to the surplus funds rather than yours.

If your property has been sold at Florida foreclosure auction, 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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  • Can A Third-Party Purchaser File a Claim for Florida Foreclosure Surplus Funds or Vacate a Sale due to Lack of Due Diligence? Read More
  • My Home Has Been Sold at a Florida Foreclosure Auction — How Do I Know if There Are Surplus Funds Available to Be Claimed? Read More