If your home was sold at a Florida foreclosure auction for more than the total amount owed on the mortgage, fees, and liens, you may be entitled to surplus funds — the money left over after all debts are satisfied. Thousands of Florida homeowners leave money on the table every year because they do not realize surplus funds exist or do not know how to claim them.
Under Florida Statute §45.032, the former homeowner has the first right to claim surplus funds from the foreclosure sale. The process is straightforward, but there are deadlines and procedures you must follow. This guide covers exactly how to find out if surplus funds exist, how to file your claim, and how to avoid giving up a large percentage to third-party recovery companies.
What Are Foreclosure Surplus Funds?
Surplus funds are the excess money generated when a foreclosed property sells at auction for more than the total amount needed to satisfy all obligations against it. The total obligations include the outstanding mortgage balance, accrued interest, late fees, attorney fees, court costs, and any junior liens such as second mortgages, HOA liens, or judgment liens.
For example, suppose your home had a mortgage balance of $200,000 (including all fees and costs), plus a $5,000 HOA lien. The total owed is $205,000. At the foreclosure auction, a third-party buyer purchases the home for $260,000. After satisfying the mortgage and HOA lien, there is $55,000 in surplus funds. That $55,000 belongs to you, the former homeowner.
Surplus funds commonly occur when the property has appreciated since the mortgage was originated, when the homeowner had significant equity before the foreclosure, or when multiple bidders at the auction drive the price above the lender's bid. In today's Florida market, where many homes have appreciated substantially since purchase, surplus funds are more common than many homeowners realize.
How Do You Find Out If Surplus Funds Exist?
There are several ways to determine whether surplus funds were generated from your foreclosure sale. The clerk of court is required to notify you, but relying solely on that notification is risky — mail may not reach you if you have moved.
- Check with the clerk of court.Contact the clerk's office in the county where the foreclosure occurred. Ask about surplus funds related to your case number. Most clerks have a dedicated surplus funds department or contact person.
- Search online court records. Many Florida counties have online case search portals where you can look up your foreclosure case and review the final judgment, sale results, and any surplus fund disbursement orders.
- Check the state unclaimed property database.If the surplus was not claimed and was transferred to the state, search fltreasurehunt.gov (the Florida CFO's unclaimed property site) using your name.
- Review the certificate of disbursement. After the foreclosure sale, the clerk files a certificate showing how the sale proceeds were distributed. If the sale price exceeded the total obligations, surplus exists.
How Does the F.S. §45.032 Claim Process Work?
Florida Statute §45.032 establishes the process for claiming surplus funds from a foreclosure sale. The statute gives priority to certain claimants in a specific order. The former homeowner has the first right to surplus funds after all lienholders have been satisfied.
The priority order under F.S. §45.032 is:
- The subordinate lienholder (junior mortgage, HOA lien, judgment lien) with the highest priority
- Remaining subordinate lienholders in priority order
- The former property owner
In practice, if there are no subordinate liens (or they were satisfied from the sale proceeds), the surplus goes directly to the former homeowner. If subordinate liens exist, the lienholders are paid first from the surplus, and any remaining amount goes to the former owner.
What Is the 60-Day Deadline to File a Claim?
The 60-day deadline is one of the most critical aspects of the surplus funds process. Under Florida law, the former homeowner or any subordinate lienholder must file a claim for surplus funds within 60 days of the date of the foreclosure sale. This deadline is strictly enforced.
If you miss the 60-day deadline, the funds are not automatically lost, but recovery becomes more complicated. The clerk may disburse the funds according to any claims that were timely filed, deposit them with the court registry, or transfer them to the Florida Department of Financial Services as unclaimed property. You may still be able to recover the funds through an unclaimed property claim, but the process takes longer and you may face additional hurdles.
To file a claim within the 60-day window, you need:
- A written claim identifying your case number and the amount of surplus
- Proof of identity (government-issued photo ID)
- Proof of your interest in the property (the deed showing you as owner, or the final judgment naming you as defendant)
- Your current mailing address for the check
The clerk's office can provide the specific forms used in that county. Some counties have standardized claim forms; others accept a written letter with the required information.
How to Claim Surplus Funds Yourself
Filing a surplus funds claim is something most homeowners can do without hiring a company or attorney. Barrett Henry, a REALTOR with 23+ years of real estate experience and Broker Associate at REMAX Collective, encourages former homeowners to claim surplus funds directly rather than paying a third-party company to do it.
Here is the step-by-step process:
- Identify your case. Get your foreclosure case number from court records or the paperwork you received during the foreclosure.
- Contact the clerk of court.Call or visit the clerk's office in the county where the property was located. Ask about surplus funds for your case.
- Get the claim form. Request the surplus funds claim form from the clerk. Some counties have these forms on their website.
- Complete the form. Fill out the claim form with your case number, your name, proof of ownership, and your current contact information.
- Submit the claim. File the completed claim form with the clerk within 60 days of the foreclosure sale. Keep a copy for your records.
- Wait for disbursement. The clerk will review the claim and, if no competing claims exist, disburse the funds to you. If there are competing claims, a hearing may be scheduled for the court to determine distribution.
The entire process typically takes 30 to 90 days from filing to receiving the funds, depending on the county and whether any competing claims are filed.
Should You Beware of Third-Party Surplus Recovery Companies?
After a foreclosure sale generates surplus funds, many former homeowners receive solicitation letters from third-party surplus recovery companies. These companies offer to file the claim on your behalf in exchange for a percentage of the surplus — typically 10% to 40% of the total amount recovered.
Before hiring a recovery company, understand what they actually do: they file the same claim form that you can file yourself. In straightforward cases where you are the former homeowner and there are no competing claims, hiring a recovery company means giving away 10% to 40% of your money for paperwork you could have done in an hour.
On a $50,000 surplus, a 30% fee means you pay $15,000 for someone to fill out a form. That is money that belongs to you — money that could help you recover from the foreclosure, find new housing, or stabilize your finances.
There are limited situations where professional help makes sense:
- Competing claims from lienholders.If subordinate lienholders are also claiming the surplus, the case may require a court hearing. An attorney can represent your interests for a flat fee or hourly rate that is likely far less than a recovery company's percentage.
- Complex title issues. If ownership was disputed or the property was part of an estate, an attorney can navigate the legal issues.
- The 60-day deadline has passed. If you missed the filing deadline, an attorney may be able to help recover the funds through the unclaimed property process or a motion to the court.
What If the Surplus Funds Were Already Claimed or Disbursed?
If another party has already claimed the surplus funds — such as a subordinate lienholder — the clerk will notify you when you file your claim. If the funds were properly disbursed to satisfy legitimate liens, the remaining amount (if any) would be available to you.
If the funds were transferred to the state as unclaimed property, search fltreasurehunt.gov using your name and the property address. The Florida Department of Financial Services holds unclaimed property indefinitely, so even if years have passed since the foreclosure, the funds may still be recoverable.
If you believe surplus funds were improperly disbursed — for example, paid to a party without a legitimate claim — you may need to file a motion with the court to contest the disbursement. This is one of the situations where hiring an attorney is justified.
Lost your home to foreclosure and think there may be surplus funds? Contact us for a free consultation. We will help you determine if surplus funds exist and guide you through the claim process.