Last week, I had a hearing in front of a judge in Pasco County. This is a judge I have appeared in front of many times for foreclosure surplus hearings. There was another case before mine, and I observed. For the first time, this Judge made a ruling I have not seen in my 13+ legal career.
The case in front of mine involved a surplus recovery company receiving an assignment from an owner of record. The assignment met all the criteria of Florida Statute 45.033. Thus, under Florida Law, this constituted a voluntary assignment, and the judge was required to find such. Instead, the judge stated that he wanted an evidentiary hearing, where, the former owner was present, the surplus recovery company president present, and the lawyer present. He wants the former owner to testify that he freely entered the contract and that he understands the max recovery is 12% for the surplus company. He also emphasized that the funds were to be received and sent in a timely manner after recovery to the surplus company.
The judge further stated that as of July 1, 2025, this was going to be required. Why is this a big deal? All over the state of Florida in surplus recovery company cases, there has been extensive fraud. Meaning, surplus recovery companies are finding people with the same name as the former owner/heir and telling them they are entitled to surplus funds. Only to come find out, that former owner/heir with the same name has no correlation to the actual person entitled. This is happening a lot, especially with common names.
I commend this judge and the courts for being more careful. This will “crack down” on the fraud being committed in Florida and will encourage the right owners or heirs are the ones benefiting from the surplus funds.
I have handled thousands of cases in Florida, if you have a Florida foreclosure surplus case, give me a call for a free consultation. Make sure to speak with a Florida surplus recovery lawyer before you assign away any of your rights.
If you hire me, I take it strictly on a contingency basis. Meaning, I don’t charge any fees or costs up front and will only get paid if I win and collect for you.