Foreclosure Surplus Fund Recovery Experts
When a property in Florida is sold at foreclosure auction for more than what is owed on the mortgage and other liens, the extra money is called surplus funds. Many former homeowners and heirs are unaware that they may be entitled to claim this money. Below are answers to some of the most frequently asked questions about foreclosure surplus funds.
1. What are foreclosure surplus funds?
Surplus funds are the remaining proceeds from a foreclosure sale after the mortgage, taxes, and any other liens are paid off. These funds are held by the court and may be claimed by the previous homeowner or other qualifying parties.
2. How do I know if I'm entitled to surplus funds?
If you were the owner of the property at the time of foreclosure and the auction sale brought in more money than what was owed, you may be entitled to the surplus. You’ll typically receive a notice from the court or the clerk’s office—but even if you don’t, you may still have a valid claim.
Also, if you are an heir to a homeowner that passed away, you may also be able to make a claim for the surplus funds. Contact us to discuss this scenario.
3. How are surplus funds generated?
A Surplus occurs when a property is sold at foreclosure auction and the sale price above the amount needed to satisfy the final judgment on the property. The overage, or surplus, is essentially the owner's equity and he/she/they are entitled to make a claim for it.
4. What happens if I don’t claim the funds?
If the funds go unclaimed, they can be held by the court for a limited time—after which they may be turned over to the state of Florida. Once that happens, claiming them becomes more difficult.
5. Is there a deadline to claim foreclosure surplus funds in Florida?
Yes. In most cases, you must file your claim within one year of the certificate of disbursement being issued. After that, the funds may be transferred to the State of Florida as unclaimed property.
6. Do I need a lawyer to claim surplus funds?
No. But working with an attorney can help you avoid costly mistakes and delays. The process involves court filings, scheduling a hearing, obtaining a court order, and disputes can arise if creditors or heirs also make claims.
7. Can heirs claim surplus funds if the homeowner passed away?
Yes. Inherited rights can transfer to heirs, but the process typically requires probate or other legal proceedings to prove rightful ownership.
8. Can second mortgage holders or lienholders claim the surplus?
Yes. Other lienholders can file claims against the surplus, but they must prove their lien was valid and properly recorded before the foreclosure.
9. I moved and didn’t know about the foreclosure. Can I still claim the funds?
Possibly. If your name is listed as the former property owner, you may still have a right to claim the funds, even if you weren’t aware of the sale. Contacting an attorney quickly is important in these cases.
10. How much do recovery companies charge?
Taormina Law, P.A. charges a contingency fee on a sliding scale anywhere from 15% - 30% of the recovered funds. No fee unless we recover funds. Be cautious: some companies may charge up to 50%, which is considered excessive. Also, be wary if cautious if they request that they you sign an Assignment of Rights.