What Are Surplus Funds and How Can You Claim Them?

If your property was sold at a foreclosure auction or tax deed sale, you may be entitled to money you didn't know existed. When a property sells for more than the amount owed, the excess funds—called "surplus funds"—belong to the former property owner or their heirs.

What Are Surplus Funds?

Surplus funds are the excess proceeds from a foreclosure sale or tax deed sale after the mortgage or tax debt and costs are paid. For example, if a property sells at auction for $250,000 but only $180,000 was owed, the remaining $70,000 (minus fees and costs) would be surplus funds.

Who is Entitled to Surplus Funds?

Generally, surplus funds are owed to:

• The former property owner at the time of the foreclosure
• Junior lienholders (in order of priority)
• Heirs of the former owner if they have passed away

How to Claim Surplus Funds in Florida

Claiming surplus funds requires following specific legal procedures:

1. Determine if Funds Exist: Contact the Clerk of Court in the county where the property was located to confirm surplus funds are available.
2. File a Claim: Submit a formal claim with the court within the required timeframe (typically within the statute of limitations).
3. Provide Documentation: You'll need to prove your identity and your right to the funds through deeds, death certificates (for heirs), and other documents.
4. Attend a Hearing: If multiple claims are filed, a court hearing may be necessary to determine rightful ownership.
5. Receive Payment: Once your claim is approved, the court will order the funds to be disbursed to you.

Common Challenges in Surplus Fund Claims

Several issues can complicate the claims process:

• Competing claims from junior lienholders
• Difficulty proving ownership or heirship
• Missing or unclear title documentation
• Statute of limitations concerns

How Pierce Law Can Help

Our attorneys have extensive experience helping clients recover surplus funds. We handle all aspects of the claims process, from initial research to court representation. Contact us today for a free consultation to discuss your potential claim.