Detailed Answer
Under Florida law, a party seeking surplus funds after a foreclosure sale must follow specific procedural steps laid out in Florida Statutes § 45.031 and § 45.032. Surplus funds arise when sale proceeds exceed the amount owed to the foreclosing creditor and other lienholders. Claimants include junior lienholders, mortgagors, or other interested parties.
Step 1: Verify Existence of Surplus Funds
Contact the court clerk in the county where the foreclosure occurred. Request a statement of surplus funds. The clerk will confirm whether proceeds remain after satisfying all liens and costs.
Step 2: Prepare Petition for Surplus Funds
File a formal petition titled “Petition for Disbursement of Surplus Funds” with the clerk. Under Fla. Stat. § 45.031, the petition must include:
- Claimant’s name, address, and interest in the property.
- Foreclosure case number and sale date.
- Amount claimed.
- Factual basis for entitlement (e.g., junior mortgage, equity interest).
Step 3: Attach Supporting Documents
Include copies of:
- Foreclosure final judgment and sale certificate.
- Recording of claimant’s lien or mortgage.
- Photo identification and proof of ownership or lien priority.
Step 4: Pay Filing Fees and Costs
Pay the clerk’s filing fee. If represented by an attorney, costs may include service of process. Review Fla. Stat. § 45.032 for fee schedules and service requirements.
Step 5: Serve Interested Parties
Serve copies of the petition and notice of hearing on all creditors, lienholders, and the former mortgagor. Service must comply with Florida Rules of Civil Procedure, Rule 1.070.
Step 6: Attend Court Hearing
The court schedules a hearing to review competing claims. Present evidence establishing your priority. The judge will rule on entitlement and disbursement.
Step 7: Obtain Court Order and Disbursement
If the court grants your petition, obtain a certified order. Submit it to the clerk to release funds. The clerk will issue a check or warrant to the claimant.
Statutory References: Florida Statutes § 45.031 (Disposition of Surplus Funds), § 45.032 (Appearance and Costs).
Helpful Hints
- Request a current surplus statement early to confirm availability of funds.
- Double-check lien priority; junior lienholders often have lower priority.
- Use certified mail for serving parties to create proof of service.
- File your petition promptly—statute of limitations may apply.
- Consult with a foreclosure attorney to review your petition before filing.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney regarding your specific circumstances.