Let’s say you owed $100,000 on your mortgage, and it sold at a foreclosure sale for $175,000. Who is entitled to that $75,000 of extra money, aka the Foreclosure Surplus Funds? Read on to find out!
Florida Statute 45.032 governs the disbursement of surplus funds after a foreclosure sale. Surplus funds or surplus refer to “the funds remaining after payment of all disbursements required by the final judgment of foreclosure and shown on the certificate of disbursements.”
In other words, upon the completion of the foreclosure, the property is sold to satisfy the mortgagee’s judgment, if the price paid is more than the amount owed to the mortgagee, the remaining funds are referred to as “surplus.”
How can former homeowners that have had their home sold benefit from this?
Florida law says that there is an established rebuttable legal presumption that the owner of record (the former Homeowner), 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.
If there are any liens or second mortgages, they may be entitled to some of the surplus funds. However, if any of these liens fail to properly follow Florida law, they may be blocked from receiving any amount of money, and the homeowner may be able to collect every single dime.
How do I know this? Because I have helped homeowners collect surplus funds even when there were second liens, whether it be a second mortgage, government lien or a municipal lien.
Even if there are no second liens, a homeowner collecting surplus funds is a technical procedure. Missing a deadline or an improper filing may lose the former homeowner the ability to collect a plethora of money.
Haynes & de Paz, has helped people litigate and collect on Florida foreclosure surplus cases. If the bank claimed your home, then claim your surplus!
Dealing with Foreclosure Surplus? Contact our firm, Haynes & de Paz, P.A.