Surplus funds (also known as excess proceeds) refer to the extra money that remains after a property has been sold through a tax deed sale or foreclosure auction, when the sale price exceeds the amount needed to cover debts against the property.
If a property sells at auction for more than the outstanding loan balance, the extra funds are called surplus funds. These funds belong to the former property owner and may be claimed after the sale.
Tax deed surplus funds are the excess proceeds that result when a property is sold at a tax deed auction for more than what was owed in unpaid taxes, penalties, and associated costs. This surplus funds can be claimed by the former property owner or lienholders.
In Florida, the management and disbursement of surplus funds resulting from foreclosure and tax deed sales are governed by specific statutes designed to ensure proper handling and distribution to entitled parties. When a property is sold through a judicial foreclosure, any funds remaining after satisfying the judgment and associated costs are considered surplus. The disbursement of these surplus funds is primarily governed by Florida Statutes § 45.032. In cases where properties are sold due to unpaid taxes, the handling of surplus funds is governed by Florida Statutes § 197.582.
Understanding and adhering to these statutes is crucial for any party seeking to claim surplus funds resulting from foreclosure or tax deed sales in Florida. Failure to comply with the specified procedures and timelines can result in the forfeiture of the right to these funds.
Florida Statute § 45.033 (1) governs the sale or assignment of rights to surplus funds resulting from foreclosure sales. When a property is sold in foreclosure for more than the amount owed, the excess funds—known as surplus funds—are subject to specific regulations to determine rightful ownership and distribution.
Understanding Florida Statute § 45.033 is crucial for property owners facing foreclosure and for individuals or entities interested in acquiring rights to surplus funds. Compliance with the statute’s provisions ensures the proper and lawful transfer of rights to surplus funds, protecting the interests of all parties involved.
Florida Statute § 197.582 outlines the procedures for disbursing proceeds from tax deed sales in the state. When a property is sold due to unpaid taxes, the statute specifies how the sale proceeds are to be allocated among various parties, including certificate holders, governmental units, and other claimants. Individuals notified of surplus funds have 120 days from the notice date to file a written claim with the clerk. The claim must include details of their interest in the property. If a lienholder, the claim should detail the lien and amounts due. Claims not filed within this period are barred.
Florida Statute § 197.582 provides a clear framework for distributing proceeds from tax deed sales, prioritizing the repayment of certificate holders and governmental liens before addressing other claims.
Surplus funds can typically be claimed within a few weeks to several months, though the timeline can vary significantly. Factors such as court procedures, county-specific regulations, and the involvement of subordinate lienholders all play a role in determining the duration. Each case’s unique circumstances can also impact the overall process.
Factors that influence the timeline include:
Delays in court filings or administrative reviews can extend the timeframe.
Claims involving disputes, incomplete paperwork, or legal challenges may take longer.
Some counties and states have faster processes for distributing funds.
To expedite the recovery of surplus funds following a foreclosure, it is imperative to file all required documents accurately and promptly. Consulting with surplus recovery specialists can significantly streamline this process.
