Filing a Homeowners’ Claim for Florida Foreclosure Surplus Funds

real estate property, house model with coins and judge

Here at Haynes Law Group, P.A., we not only defend current Florida Homeowners from Florida mortgage foreclosures, but also assist former Homeowners who are looking to file a Homeowners’ claim for Florida foreclosure surplus funds. If you’re reading this then chances are you’ve been notified that there are surplus funds available for you to claim after the recent Florida foreclosure auction of your Florida property. If so, then please let me explain what Florida foreclosure surplus funds are. According to Florida Statute 45.032(c) “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 the former Homeowner to claim!

Furthermore, 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.” Therefore, meaning that you as the former homeowner at the time the foreclosure action was initiated are legally entitled to a portion, or the entirety, of the surplus funds that are available. I say a portion, or the entirety, because there are several factors that can affect the amount of surplus funds a former homeowner receives. Examples of these factors are:

  • A Subordinate Lienholder with a valid claim.
  • Parties that are involved with a divorce that are ordered to split the proceeds of the property once it is sold or even parties involved in a divorce that owe back-child support.
  • Heirs filing competing claims for the surplus funds on behalf of the deceased former Homeowner.

Moreover, there are two ways former Homeowners are notified of surplus funds being available to be claimed. The first is through what is called a Certificate of Disbursements. This document is prepared and mailed out by the Clerk of Court and contains information related to the foreclosure auction of the property — this usually reflects the amount the property was sold for and whether there are surplus funds being held in the Court registry. The second way a former Homeowner may be notified of surplus funds being available for them to claim is by what are known as Third-Party Surplus Funds Recovery Companies. If you have been by one of these companies, then I strongly advise that you give our office a call right away and that you DO NOT sign anything. By giving us a call, I can inform you of your rights as they pertain to the surplus funds as well as more information as to the company that contacted you. Furthermore, I can also provide you with a personalized strategy as to how we can assist you with the filing of your claim for YOUR surplus funds.

At Haynes Law Group, P.A., we have experienced attorneys who 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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