At the Haynes Law Group, P.A., we not only defend current Florida homeowners facing mortgage foreclosure, but also assist former homeowners who wish to file a claim for Florida foreclosure surplus funds. Today, I will be discussing whether there is a time limit for a former homeowner to file a claim for surplus funds, if available, following the Florida foreclosure auction of their property.
What Are Surplus Funds?
First, it is important to understand what surplus funds are. Florida Statute 45.032(1)(c) states that “surplus funds” or “surplus” means the funds remaining after payment of all disbursements required by the final judgment of foreclosure and shown on the certificate of disbursements.”
Under Florida Statute 45.032(2), there is a rebuttable legal presumption that the owner of record—meaning the person or persons listed as owning the property on the date the lis pendens was filed—is the party entitled to any surplus funds remaining after payment to subordinate lienholders who have timely filed a claim.
How Do I Know if Surplus Funds Are Available?
Whether surplus funds exist depends on the amount listed in the Final Judgment and the amount the property sells for at the foreclosure sale. For example, if the Final Judgment is $200,000.00 and the property sells for $250,000.00 at the foreclosure sale, then $50,000.00 in surplus funds would be available to claim.
Is There a Time Limit to Claim Surplus Funds?
Yes. Pursuant to Florida Statute 45.032(3)(c), if no claims to the surplus funds are made within one year after the sale, any remaining surplus held by the clerk of court is presumed unclaimed and must be reported to the state department.
In other words, one year after the sale, the surplus funds will be transferred to the Florida Department of Financial Services. Once the funds are sent to the state, the recovery process becomes significantly more complicated. For this reason, it is crucial to act promptly when seeking to claim surplus funds, as the process is much simpler when handled through the clerk of court rather than the state department.
We Are Here to Help
If you have been notified that surplus funds may be available after the foreclosure sale of your property and would like to confirm whether funds exist, please give me a call. I will personally provide a free consultation to determine whether surplus funds can be recovered and answer any questions you may have. If surplus funds are available, I will also offer a personalized strategy outlining how the Haynes Law Group can assist in recovering your Florida foreclosure surplus funds.
At Haynes Law Group, P.A., we are highly experienced in the Florida statutes governing homeowners’ claims for foreclosure surplus funds. We have successfully recovered millions of dollars for former homeowners across Florida and represent clients statewide, regardless of county. Our team is committed to delivering the Gold Standard of Legal Service and working tirelessly to help you recover the funds you may be entitled to receive.