What are foreclosure surplus funds in FL and how to claim them
Enduring a foreclosure is stressful and complicated, and many homeowners are unaware that they could be entitled to excess proceeds following a foreclosure auction. These foreclosure surplus funds are critical for Florida homeowners to help them start fresh after this trying time. Here is everything you need to know about excess proceeds and how to claim them:
What are foreclosure surplus funds?
Foreclosure surplus funds in Florida, also called overage or excess funds, are the funds leftover after a homeowner pays their mortgage through the final judgment of a foreclosure auction.
If, after completing a foreclosure and the property sells and satisfies the mortgage’s judgment, sometimes the home sells for more than what the homeowner owed. If the amount they paid is greater than what they owed on the mortgage, the difference is a ‘surplus.’
For example, if you owed $125,000 on your mortgage but your home sold for $150,000, you may be entitled to claim the $25,000 difference.
Are you entitled to a surplus?
Foreclosure rules and claims processes vary by state, so seeking expert counsel is essential. Typically, only the last recorded owner on the filing date is entitled to claim surplus funds.
Still, understanding if you are entitled to a surplus requires evaluating your situation. Track the foreclosure process and contact the trustee or officer to see if excess funds are available. However, you must factor in other claims on your home.
These claims are called liens by the lienholder in the land records at your county clerk’s office. The primary lien is usually the mortgage lender and gets paid first from excess funds. If you still owe property taxes, these are paid before you are eligible.
Some homeowners also have second mortgages or receive a credit card judgment lien, and these are called junior liens. Junior lienholders receive payment after the first lienholder does. If there are still excess proceeds at this point, you can claim them.
How do you get foreclosure surplus funds?
Claiming foreclosure surplus funds in Florida typically takes 30 to 45 days. Remember that even if there are other claims on your property, if these liens fail to adhere to Florida law, this can prohibit them from receiving any part of the surplus.
Working with experts ensures you get as much as you are entitled to. A trustee or court will hold any excess proceeds. After the auction, you will receive a notice of the surplus to your last known address. If you do not receive one immediately, contact the number on prior notices.
Acting fast is imperative because there is a narrow window for homeowners to claim surplus funds. You will need to furnish the trustee or court with proof of prior ownership. Conducting a title search is how we recommend proving you are on the title.
You also must provide verification of funds to prove you are owed a surplus, and you must complete and submit a claim form. You may have to attend a court hearing, too. Abiding by the proper process is essential because failure to do so can result in receiving no funds.
Contact us now to receive the excess proceeds you deserve
If you have experienced the loss of your home due to foreclosure, you may be entitled to foreclosure surplus funds. In Florida, many people are unaware of how much they can claim, and these excess proceeds are invaluable when starting with a clean slate. We have nearly two decades of industry experience helping clients receive the money they are entitled to. We connect clients with supremely qualified attorneys, offer an intuitive app, and our process is personalized and simplified. We don’t get paid until you do. Contact us now to claim what you deserve.
