Today, we will be discussing Condominium Association Foreclosure sales and whether surplus funds can result from said sales. The answer to this is yes. The reason being that the property is still being sold at foreclosure auction and must follow the Florida Statutes that are in place for real property foreclosures. Therefore, surplus funds can result manner as other foreclosure actions (i.e., Mortgage foreclosures and Homeowners’ Association foreclosures) and are defined om the same way. Florida Statute 45.032(1)(c) defines surplus funds as “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 Condominium Association foreclosure action in the amount of $10,000, and the property is sold at foreclosure auction in the amount of $80,000, then there will be a surplus of funds in the amount of $80,000 available to be claimed!
As such, Florida Statute 45.032(2) states that “[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.” The “owner of record” is defined by Florida Statute 45.032(1) as “the person or persons who appear to be owners of the property that is the subject of the foreclosure proceeding on the date of the filing of the lis pendens.” Thus, meaning that the former homeowner(s) of a Florida property sold at a Florida Condominium Association foreclosure auction is/are entitled to file a claim for the surplus funds that are available. However, please beware, should you be contacted by a Third-Party Surplus Funds Recovery Company looking to “assist” you with the recovery of your surplus funds; please DO NOT sign anything until you have consulted with an experienced Florida Surplus Funds Recovery Attorney. By speaking with an experienced attorney, you can gain a better understanding of our rights as they pertain to said surplus funds. The reason you should not sign anything until you have spoken with an attorney is due to the fact that in order to hire one of these companies, you must first sign what is known as an “Assignment of Interest.” This document would effectively assign your rights, as the former homeowner, to the surplus funds to the Third-Party Company. Once your rights have been assigned away, it can be difficult, but not impossible, to recover said surplus funds — unless the funds have already been disbursed to said Third-Party Company.
If you’re reading this and your property has been sold at Florida Condominium Association foreclosure auction, 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 recovered as well as answer any questions that you may have. If there are surplus funds available to be recovered, then I will also provide you with a personalized strategy as to how we can assist you with the recovery of YOUR Florida foreclosure 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.