If your home is sold in a foreclosure sale at a price higher than what you owe (either on the mortgage or you owe condominium assessments), you may be entitled to recover those surplus funds. The Andres Lopez Law Firm helps homeowners recover the foreclosure surplus funds.
Generally, the homeowner who is the record owner at the time a lis pendens is filed has the right to seek the foreclosure surplus funds. Thus, if the homeowner owes $5,000.00 to a condominium association, and their property is sold at the foreclosure auction for $20,000.00, there is a surplus of $15,000.00.
The record owner of the property is entitled to recover those surplus funds (even if there is a mortgage on the property or if there is a superior lienholder). To do so, the homeowner must act within certain deadlines. Specifically, the homeowner must file a motion seeking those funds within 60 days after the clerk issues a certificate of disbursements. If the homeowner fails to take action during that time, they may forfeit the right to the surplus funds.
If no claim is filed, the clerk will appoint a surplus trustee to locate the record owner. If an owner cannot be found within a one-year period, the foreclosure surplus funds are treated as unclaimed property and are deposited with the Chief Financial Officer of the state of Florida.
Oftentimes a homeowner will be entitled to the foreclosure surplus funds, but a third party may make a claim on the foreclosure surplus funds (they must make the claim within the 60-day period mentioned above). A subordinate lienholder such as a second mortgage lienholder, a credit card lienholder, a tax lienholder, or a homeowners association lienholder may also make a claim on the foreclosure surplus funds within the 60-day period. If they do so, the court will set an evidentiary hearing to determine entitlement to the foreclosure surplus funds.
In order for a homeowner to be entitled to foreclosure surplus funds, they must make a claim within the 60-day period. The Andres Lopez Law Firm will help protect your rights to collect the surplus funds.
To schedule a consultation with a lawyer who is knowledgeable about foreclosure defense, contact The Andres Lopez Law Firm today at 800-785-1738 or fill our online form. We answer the phone 24/7, and we offer evening and weekend appointments upon request. We have in Fort Lauderdale and Coral Springs.