Florida Foreclosure Surplus Funds: Is There a Time Limit to File My Claim?

women holding small house

Today, we will be discussing whether there is a time limit for a former Homeowner to file a claim for surplus funds, should they be available, after the Florida foreclosure auction of their Florida property. First and foremost, I’d like to provide an explanation as to 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.”

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 a former Homeowner to claim!

According to Florida Statute 45.032(2),“[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 Florida 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.” Meaning that the legal title holder of the subject property at the time the foreclosure action was initiated and sold at public auction is the one entitled to filing a claim for the surplus funds that are available.

Now, when it comes to a former Homeowner filing a claim for Florida foreclosure surplus funds time is of the essence. The reason being that if you wait too long, it can become a bit more difficult to recover said funds. Per Florida Statute 45.032(3)(c) “[o]ne year after the sale, any surplus remaining with the clerk of the court that has not been disbursed” must be reported and turned in to the Florida Department of Unclaimed Property. Whereas, if a claim is filed prior to the one-year deadline; then a claim will be filed with the clerk of court for the county in which the funds are being held. Filing a claim with the clerk of court is a bit more streamlined, and depending on the county, much quicker than going through the State Department.

If you have been notified that there are surplus funds available after the Florida foreclosure auction of your property and would like to know whether there are surplus funds available to be claimed, 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 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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