Florida Homeowners’ and/or Condominium Association Surplus Funds: Subordinate Lienholders

Representing Homeowners

If you are reading this, chances are that you are former Florida homeowner who has been notified that there are surplus funds available for you to claim after the recent Homeowners’ (HOA) and/or Condominium Owner’s (COA) Association foreclosure sale of your Florida property. Additionally, you may be considering filing a pro se homeowners’ claim to recover said surplus funds. However, I strongly recommend that you consult with an experienced Florida Foreclosure Surplus Funds Recovery Attorney prior to filing your pro se claim.

I recommend consulting with an attorney prior to filing your pro se claim because an experienced attorney can advise you of factors in your case that you may not be aware of such as a Subordinate Lienholder filing a competing claim. A Subordinate Lienholder is defined by Fla. Statute 45.032(1)(b) as “the holder of a subordinate lien shown on the face of the pleadings as an encumbrance on the property.” Meaning that if there were other parties served during your HOA or COA foreclosure action (such as a second mortgage, fence company, or construction company etc.), then they will also be able to file a claim for a portion, or even the entirety, of the surplus funds that are available based on the debt that is owed to them. However, it is important to know that Subordinate Lienholders must file a “timely claim” for them to receive a disbursement of the surplus funds at all. A timely claim for a Subordinate Lienholder is considered “one year after the sale…”, according to Fla. Statute 45.032(3)(b). Should a Subordinate Lienholder file a claim after the one-year deadline, then they will not be entitled to any portion of the surplus funds.

Moreover, should there be a competing claim filed by a Subordinate Lienholder in your case, then the Judge will require what is known as an “Evidentiary Hearing.” During the Evidentiary Hearing, the parties with the competing claims will be required to plead their case in front of a Judge and will have to explain why they believe they are entitled to a portion, or the entirety, of the surplus funds that are available. Upon hearing the arguments from all parties, the Judge will then determine, or rule, how the surplus funds should be disbursed to the parties whether it be a portion, the entirety, or even nothing at all.

As you can see, consulting with an experienced Florida foreclosure surplus funds attorney prior to filing a pro se homeowners’ claim to your foreclosure surplus funds can be fruitful. Furthermore, should you decide to hire an attorney to assist you with your claim they can often circumvent the need for an evidentiary hearing by coming to an agreement with the Subordinate Lienholder that has filed a competing claim, or in the alternative, argue as to why they should not receive any disbursement of the surplus funds that are available.

If you would like to speak with an experienced Florida foreclosure surplus funds recovery attorney regarding your claim, 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 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 can assist you with the filing of your claim.

At Haynes Law Group, P.A., we have experienced Attorneys who are well-versed in the Florida statutes governing former Florida homeowners’ claims to Florida HOA and/or COA foreclosure surplus funds and have helped to claim 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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