Today, we will be discussing the circumstances in which a former Florida Homeowner will not receive Florida foreclosure surplus funds after the foreclosure sale of their Florida property, should said funds be available.
The main scenario in which a former Florida Homeowner will not receive the surplus funds that are available to them is if there is an outstanding Subordinate Lienholder who has filed a timely claim under Fla. Statute 45.032(3)(b). I say this because if the surplus funds remaining are equal to or less than the amount that is owed to the Subordinate Lienholder, who has filed a timely claim, then said funds will go directly to the Subordinate Lienholder. Thus, the former Florida Homeowner will not receive a disbursement of the surplus funds as there will no longer be any remaining or available to be claimed. However, it is very important to note that if a Subordinate Lienholder, if any, does not file a timely claim, or within the 1-year rule imposed by Fla. Statute 45.032(3)(c), then the Florida foreclosure surplus funds will be reserved for the “Owner of Record”, per Fla. Statute 45.032(2).
Another scenario, and probably the most devastating, in which a former Florida Homeowner will not receive a disbursement of the Florida foreclosure surplus funds that are available to them is if they assign away their rights to said surplus funds to a Third-Party Surplus Funds Recovery Company. Often, these companies are hired by former Homeowners because they are their first point-of-contact and the first to notify them that there are Florida foreclosure surplus funds available to be claimed after the Florida foreclosure sale of their Florida property. When these companies are hired, they usually have the former Homeowner sign a form that voluntarily transfer’s their rights to the surplus funds to the Third-Party Surplus Funds Recovery Company. The reason why these companies make the former Homeowner assign away their right to the surplus funds is because they must demonstrate to the Court the following:
“A voluntary transfer or assignment shall be a transfer or assignment qualified under this subsection, thereby entitling the transferee or assignee to the surplus funds or a portion or percentage of the surplus funds,” per Fla. Statute 45.033(3).
After, this occurs these companies will then forward the case information to their OWN ATTORNEY so that they can recover the surplus funds. Once, the surplus funds are recovered many of these companies will then disappear in thin air leaving the former Homeowner who hired them without a dime of the surplus funds. This is why I always advise former Florida Homeowners against hiring these companies and to immediately contact an experienced Florida Foreclosure Surplus Funds Recovery Attorney.
If you are reading this as a former Florida Homeowner and are seeking assistance in the filing of your claim for Florida foreclosure surplus funds, please give me a call and I will personally give you a free consultation. During our consultation, I will confirm whether or not there are surplus funds available to be claimed as well as answer any questions that you may have. If there are surplus funds available to be claimed, then I will also provide you with a personalized strategy as to how we will go about the claim filing process.
At Haynes Law Group, P.A., we have experienced Attorneys who are well versed in the Florida statutes governing former Florida Homeowners claims to foreclosure surplus funds and have helped to claim hundreds of thousands 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. Best of all, we represent our Clients on contingency which means we don’t get paid unless you do!