Question 1

What are surplus funds (overage) from a Florida foreclosure sale?

Accepted Answer

Surplus funds: when a property is sold at a Florida foreclosure sale for more than the amount owed (including the judgment, costs, and fees), the excess amount is called surplus funds or overage. Under Section 45.032: the former owner and subordinate lienholders have a right to claim the surplus. The clerk of court holds the surplus funds and distributes them according to: first, any subordinate liens (in order of priority), and second, the former owner (any remaining surplus after all liens are satisfied). The former owner must file a claim with the clerk within 60 days of the sale.

Question 2

How does a Florida property owner claim surplus funds?

Accepted Answer

Claim process: the clerk mails notice of the surplus to the former owner and all known subordinate lienholders (Section 45.032(2)), the former owner files a claim with the clerk of court (within 60 days of the sale), the claim should include: identification (name, address, and SSN/ITIN for tax reporting), proof of ownership at the time of the foreclosure, and a description of any subordinate liens. If there are competing claims: the court holds a hearing to determine the priority and amount of each claim. The former owner should act quickly: unclaimed surplus funds may eventually be transferred to the state’s unclaimed property division.

Question 3

Can a third party purchase surplus fund claims in Florida?

Accepted Answer

Third-party claims: yes, Florida allows the purchase and assignment of surplus fund claims. Companies that specialize in this: identify properties sold at foreclosure with surplus funds, contact the former owner and offer to purchase the claim for a fraction of the surplus, and file the claim on their own behalf. The former owner should be cautious: these companies typically offer 10-30% of the surplus (the former owner would receive much more by filing the claim directly), and some companies may use deceptive practices. The former owner should consult an attorney before assigning surplus fund rights.

Overage Sale Proceeds Surplus Funds Recovery

Surplus Funds (Overage) from Florida Foreclosure Sales

How It Works

Claiming Surplus

Caution: Third-Party Buyers

Related Terms

Barnes Walker Real Estate

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