The Short Answer

In Florida, foreclosure “surplus funds” are generally presumed payable to the owner of record as of the date the lis pendens was filed—but when that owner has died, the claim typically must be made through the proper legal representative or beneficiaries of the deceased owner’s estate. If your parent’s estate was never opened, you may need a probate proceeding (often summary administration) to establish who has legal authority to receive the surplus.

What Florida Law Says

Florida treats surplus proceeds from a judicial foreclosure as funds held by the clerk pending a court order. The law creates a presumption that the “owner of record” (as of the lis pendens filing date) is entitled to the surplus after timely claims by subordinate lienholders are resolved. When the owner of record is deceased, entitlement usually turns on inheritance/estate rights and proof to the court of who is legally entitled to collect.

If the surplus sits too long, it can be treated as unclaimed property and remitted away from the court registry, which can add delay and extra proof requirements.

The Statute

The primary law governing this issue is Fla. Stat. § 45.032.

This statute establishes a rebuttable presumption that the owner of record on the lis pendens date is entitled to foreclosure surplus funds (after timely subordinate lienholder claims), and it also addresses what happens if the funds remain undistributed and become “unclaimed.”

When there is no open estate, Florida probate law is often the mechanism used to establish who the beneficiaries are and to obtain an order that third parties (including the clerk) can rely on to release funds. A common probate shortcut is summary administration when the estate qualifies under Fla. Stat. § 735.201.

Related reading: What is a surplus funds case in Florida?

Why You Should Speak with an Attorney

While the statutes provide the general rule, applying them to a deceased owner’s surplus claim is rarely simple. Legal outcomes often depend on:

• Strict Deadlines / Where the Money Is Now: Under Fla. Stat. § 45.032, surplus funds not disbursed within a year after the sale are presumed unclaimed and may be remitted under Florida’s unclaimed property process—changing how you must prove entitlement.
• Burden of Proof: If you are not the “owner of record” (because your parent was), you generally must prove your legal right to collect as a beneficiary/heir or through a court-authorized representative. If there are competing claims, the court can set an evidentiary hearing.
• Exceptions and Competing Interests: Subordinate lienholders may have priority if they timely file claims, and family disputes (multiple heirs, a later-discovered will, or an omitted beneficiary) can derail a straightforward release of funds. If someone claims rights through an assignment, the court applies additional statutory rules. See Fla. Stat. § 45.033.

Trying to handle this alone can lead to a denied claim, delays while the court requires additional proof, or avoidable litigation among heirs. A Florida probate attorney can evaluate whether summary administration is available, identify who must be served/noticed, and present the right evidence to the foreclosure court to obtain a disbursement order.

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Disclaimer: This article provides general information under Florida law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.