What are surplus funds?

What Are Surplus Funds?

Surplus funds refer to the money remaining after a foreclosure sale when the sale price of the property exceeds the amount needed to satisfy the lender's (bank's) judgment and other associated costs as specified in the Final Judgment of Foreclosure. For instance, if the foreclosure judgment is $200,000 and the property sells at auction for $225,000, the surplus funds would total $25,000.

 

Who Is Entitled to Surplus Funds?

According to Section 45.032 of the Florida Statutes, the Owners of Record (the individuals who owned the property at the start of the foreclosure case) and Subordinate Lienholders are eligible to claim surplus funds. This means the previous property owner or borrower may still be entitled to these funds, even if they no longer live in the property.

A subordinate lienholder is someone who holds a secondary lien on the property, such as a second mortgage, judgment lien, tax warrant, or construction lien. In some cases, even if there are subordinate lienholders, there may still be enough funds to pay the former owner or defendant in the foreclosure.

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How to Claim Surplus Funds?

The process for claiming surplus funds can vary depending on the case. In some situations, filing a claim may not be urgent, while in others, it is critical to act quickly. Timing is essential, so it's important to consult a professional who can review the specifics of your case and determine the best time to file your claim.

To claim the surplus funds, you must follow specific procedures. Failure to do so may result in the funds being abandoned or sent to the State of Florida.

If you're an owner or subordinate lienholder and believe you're entitled to surplus funds, contact Ricardo Barrios at 3058157202  to ensure you receive any funds that may rightfully belong to you from the foreclosure sale.