Florida foreclosure and tax deed surplus funds

When a Florida foreclosure or tax deed auction sells for more than the debt and costs, the clerk holds the difference as surplus. It belongs first to lienholders who were cut off by the sale and then to the former owner, but they have to claim it, and the deadlines differ for the two kinds of sale.

If the sale brings more than the judgment and costs, the extra is surplus. It goes to subordinate lienholders who claim it and then to the owner of record. Claims other than the owner's must be filed within one year of the sale, after which the clerk sends unclaimed surplus to the state's unclaimed property program. (§45.032, Fla. Stat.)

Someone who buys an owner's right to foreclosure surplus must file the assignment within 60 days after the clerk issues the certificate of disbursements, and their fee is capped at 12% of the surplus. Owners don't need a lawyer or a recovery company to file a claim. (§45.033, Fla. Stat.)

When a tax deed sells above the opening bid, government lienholders are paid first and the rest is surplus. The clerk mails a notice of surplus funds to the people who were owed notice of the sale, and they have 120 days from that notice to file a claim. (§197.582, Fla. Stat.)

After the 120-day claim period, the clerk has 90 days to pay the claims in order of priority or ask the court to decide them. If no one claims the money, the titleholder of record is presumed entitled to it, and unclaimed money goes to the state's unclaimed property program. (§197.582, Fla. Stat.)

For homestead property, the one-half of assessed value added to the tax deed opening bid is treated as surplus too, so a homestead tax deed sale always leaves surplus if the property sells. (§197.502, Fla. Stat.)

Sales where an outside bidder paid well above the judgment or opening bid are the ones that leave surplus. Browse recent results on Florida auction results, which show each winning bid next to the judgment or opening bid.