Florida Foreclosure Surplus Funds: Avoid Third-Party Surplus Funds Recovery Companies


If you’re reading this, then chances are that you’ve been contacted by a Third-Party Surplus Funds Recovery Company informing you of the surplus funds that are available for you to claim after the recent Florida foreclosure auction of your Florida property. First and foremost, please allow me to explain what Florida foreclosure surplus funds are. 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.” This same statute further states that “[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 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.” Therefore, meaning that you (as the former Florida Homeowner) are entitled to a portion, or the entirety, of the surplus funds that are available as long as there are no Subordinate Lienholders with a valid claim.

For example: If a final judgment of foreclosure is entered against a Florida property in a Florida foreclosure action in the amount of $100,000 and the property is sold at foreclosure auction in the amount of $150,000, then there will be a surplus of funds in the amount of $50,000 for the former Homeowner to claim!

Due to the public nature of Florida foreclosure auctions, Third-Party Surplus Funds Recovery Companies will usually stalk each Florida counties’ foreclosure auction website to locate properties that have been sold and that contain surplus funds. Once located, these companies will then search for any way possible to contact the former Homeowner(s) to get them to hire their company to “assist” them with the recovery of their surplus funds. Most of these companies, when they begin their call with a former Homeowner, will attempt to present themselves as attorneys without actually saying it. However, what you and former Homeowners should know is that the people speaking with you are not attorneys. The reason I know this is because Fla. Statute 877.02 makes it unlawful for Florida Attorneys to solicit legal services, directly or indirectly, through an agent/business, to the public. Furthermore, it is important for you, the former Homeowner, to know that in order for these companies to “assist” or represent you in the recovery of your Florida foreclosure surplus funds, they must have you sign what is commonly known as an “Assignment of Interest.” Should you sign one of these documents, you will be transferring your rights, or interest, in the surplus funds to the Third-Party Surplus Funds Recovery Company, who will then go and hire their own Attorney to recover said surplus funds. Additionally, this Attorney will be representing the Third-Party Company’s best interests as they pertain to the surplus funds and not yours (the former Homeowner’s). Too often have I come across scenarios where a former Homeowner assigns away their right to one of these companies who successfully recovers the funds and then said company magically dissolves or disappears as soon as the funds are received — once the funds are disbursed to one of these companies there’s no way to get them back. Thus, why I strongly advise that former Homeowners consult with an experienced Florida foreclosure surplus funds recovery attorney as soon as they are contacted by one of these companies and to NOT SIGN anything that they receive from them. Former Homeowners should rest assured that when they speak with an experienced Florida foreclosure surplus funds recovery attorney, they will gain a better understanding of their rights as they pertain to said surplus funds and will be better equipped to protect their rights.

If you’ve been notified of surplus funds being held in the Court registry after the Florida foreclosure auction of your Florida property; 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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