Surplus Funds Recovery vs. Surplus Funds
You Got a Surplus Funds Offer. Here’s What It Means
A letter shows up weeks after a foreclosure sale closes, offering to recover money you did not know existed. That letter is not a scam by default, but it is also not the only way to get your surplus funds back.
Florida law gives former homeowners a direct path to claim leftover sale proceeds through the clerk of court, with no finder’s fee required. A surplus funds recovery company offers a different path, one built around convenience and speed rather than keeping the full amount.
Both paths are legal. Knowing the difference before you sign anything determines how much of your own money you actually keep. Call (727) 933-0015 if you already received a surplus funds letter and want a second opinion before responding.
Key Takeaways About Florida Surplus Funds
- Surplus funds belong to the owner of record on the date the lis pendens was filed, not automatically to whoever files first.
- Florida law caps any recovery company’s fee at 12 percent of the surplus under Fla. Stat. § 45.033.
- The clerk of court holds surplus funds for a set period before they are treated as unclaimed.
- Filing directly with the court costs nothing beyond standard clerk fees, unlike hiring a recovery company.
- Subordinate lienholders may have a claim to part of the surplus before the homeowner receives the remainder.
How We Handle Surplus Funds Claims at Lopez Law Group
At Lopez Law Group, we file surplus funds claims directly with the clerk of court on behalf of former homeowners, rather than asking clients to assign away their rights. Filing sounds simple until a subordinate lienholder objects or the clerk’s paperwork gets rejected for a technical error, which is where our St. Petersburg real estate team steps in.
We do not purchase a percentage of your surplus or ask you to sign over your claim to us. Instead, we charge for the legal work of filing and defending the claim, which usually costs less than the 12 percent a recovery company is legally allowed to take.
We work out of our St. Petersburg office at 700 7th Ave N and represent clients whose homes sold at foreclosure auction anywhere in the greater Tampa Bay area, regardless of which lender foreclosed or which county handled the sale.
What Are Surplus Funds After a Florida Foreclosure Sale?
Surplus funds are the money remaining after a foreclosure sale pays off the mortgage balance, court costs, and any liens listed in the final judgment. Under Fla. Stat. § 45.032, the clerk of court calculates this amount and issues a certificate of disbursements once the sale closes.
A home does not need to sell for a huge amount over the mortgage balance to create surplus funds. Even a few thousand dollars left over after payoff qualifies, and Florida law treats that money as belonging to the former owner unless someone else has a valid claim.
Why This Money Often Goes Unclaimed
Many former homeowners move, change phone numbers, or simply do not expect money after losing a home to foreclosure. The clerk’s notice may arrive at an address the homeowner no longer checks, which is part of why recovery companies exist in the first place.
Who Is Entitled to Claim Surplus Funds in Florida?
The owner of record on the date the lis pendens was filed holds a legal presumption of entitlement to the surplus, ahead of most other claimants. Subordinate lienholders who filed a timely claim get paid first, with any remaining balance going to that owner of record.
Someone claiming the surplus as an assignee of the owner’s rights carries the burden of proving that claim to the court. This is the position a surplus funds recovery company occupies once a homeowner signs an assignment agreement. The same core rules apply to surplus in commercial foreclosure cases, though ownership structures like LLCs often add complexity.
Surplus Funds Recovery Companies vs. Filing Your Own Claim
Choosing between a recovery company and filing directly comes down to how much of the money you want to keep and how much control you want over the process. Both routes are legal in Florida, but they work very differently.
| Factor | Surplus Funds Recovery Company | Filing the Claim Yourself or With an Attorney |
|---|---|---|
| Maximum fee | Up to 12 percent of the surplus under Fla. Stat. § 45.033 | Attorney fees vary; no assignment of your surplus rights |
| Who controls the claim | The company, once you assign your rights | You or your attorney, filed directly with the clerk |
| Required disclosures | Must state you do not need an attorney or agent to claim the funds | Not applicable |
| Filing deadline | Must file the assignment within 60 days of the certificate of disbursements | Same clerk deadlines apply |
| Risk of dispute | May face challenges proving the assignment is valid in court | Generally more straightforward, since you remain the claimant |
How Do You Claim Surplus Funds in Florida?
You claim surplus funds in Florida by filing a motion with the clerk of the circuit court that handled the foreclosure, within the timeframe set after the certificate of disbursements. The clerk will not release funds automatically just because you were the former owner. Understanding how Florida foreclosure auctions generate surplus in the first place helps explain why this filing step exists.
The general claim process follows a consistent sequence across Florida counties.
- Confirm a certificate of disbursements was filed, which shows whether surplus funds exist.
- File a claim or motion for disbursement with the same court that entered the foreclosure judgment.
- Provide identification and proof that you owned the record on the lis pendens filing date.
- Respond to any objection filed by a subordinate lienholder or competing claimant.
- Wait for a court order directing the clerk to release the funds.
Skipping any of these steps, or filing late, can push a valid claim into a contested hearing that takes months longer to resolve. Filing early and correctly matters more than filing fast.
What Is a Surplus Funds Recovery Company and How Does It Get Paid?
A surplus funds recovery company locates former homeowners with unclaimed sale proceeds and offers to file the claim in exchange for a percentage of the money recovered. Under Fla. Stat. § 45.033, that percentage cannot legally exceed 12 percent of the surplus.
The same statute requires the company’s agreement to state plainly that you do not need an attorney or agent to recover the funds yourself. If that disclosure is missing from an offer you received, treat it as a warning sign rather than an oversight.
Watch for these signs when evaluating a surplus funds recovery offer.
- A fee percentage above 12 percent, which exceeds the statutory cap entirely.
- Pressure to sign quickly, before you have time to check whether you can file directly.
- No mention of your right to pursue the claim without an agent or attorney.
- A request for upfront payment before any funds are recovered.
- Vague or missing details about which county court and case number the surplus relates to.
None of these signs prove fraud on their own, but together they suggest an offer worth verifying before you sign. A quick call to the clerk of court in the county where the foreclosure occurred can confirm whether surplus funds actually exist.
How Long Do You Have to Claim Surplus Funds in Florida?
The clerk of court holds surplus funds for a set period after issuing the certificate of disbursements, giving the owner of record and any lienholders time to file a claim. Under Fla. Stat. § 45.032, unclaimed surplus is treated as presumptively unclaimed one year after the foreclosure sale.
Waiting past that window does not necessarily mean the money is gone, but it does mean the process for recovering it becomes more complicated. Funds reported as unclaimed typically get transferred to the state’s unclaimed property division, adding another step to any recovery.
What Happens if Surplus Funds Go Unclaimed?
Unclaimed surplus funds do not stay with the clerk of court indefinitely. Once the one-year presumption of unclaimed status applies, the funds generally move toward Florida’s unclaimed property system, where they remain searchable but require a separate claim process.
Locating funds through the state’s unclaimed property database takes longer and involves different paperwork than a direct clerk claim. This is another reason recovery companies target former homeowners quickly, since a faster claim usually means a simpler one.
Can a Subordinate Lienholder Claim Surplus Funds Before the Homeowner?
Yes, a subordinate lienholder who files a timely claim gets paid from the surplus before the former homeowner receives the remaining balance. This includes second mortgages, homeowners association liens, or judgment liens recorded against the property before the foreclosure sale.
If a lienholder’s claim exceeds the surplus amount, the homeowner may receive nothing even though the property sold for more than the primary mortgage balance. Reviewing what liens existed on the property before assuming the full surplus belongs to you avoids a surprising outcome later.
What Documents Do You Need to File a Surplus Funds Claim?
Filing a claim moves faster when you gather the right documents before contacting the clerk of court. Missing paperwork is one of the most common reasons a claim gets delayed or challenged.
Most surplus funds claims require the following items.
- A government-issued photo identification matching the name on the property deed.
- The foreclosure case number, available from the clerk’s online records or the original lawsuit paperwork.
- Proof of ownership on the lis pendens filing date, such as the deed or mortgage documents.
- Current mailing address and contact information for the court’s disbursement order.
- Any assignment or power of attorney documents, if someone else is filing on your behalf.
Having these documents ready before filing reduces the chance the clerk returns your claim for missing information. A claim filed once correctly moves faster than one filed twice.
FAQ for Surplus Funds
Do I have to pay taxes on surplus funds from a Florida foreclosure?
Maybe, depending on your specific tax situation and whether the surplus is treated as taxable income or capital proceeds. Consulting a tax professional about your specific circumstances is worth doing before you spend the funds.
Can I claim surplus funds if my mortgage was with a bank that no longer exists?
Yes, the surplus claim process runs through the court and clerk of court, not the original lender, so a merged or closed bank does not affect your right to claim the money. The case remains tied to the court that handled the foreclosure.
What if I never received notice that surplus funds existed?
Not receiving notice does not eliminate your right to claim funds you are entitled to, though it may mean you find out about them later than other claimants. Checking directly with the clerk of court in the county where your home was foreclosed is the fastest way to confirm.
Is it legal for a company to buy my surplus funds claim outright instead of taking a percentage?
Generally no, Florida law caps compensation to a recovery agent at 12 percent of the surplus rather than allowing an outright purchase of the claim discounted. An offer structured as a flat buyout below that cap should be reviewed carefully.
Can I still claim surplus funds if the property was a rental, not my primary residence?
Yes, entitlement to surplus funds depends on being the owner of record on the lis pendens filing date, not on whether the property was owner-occupied. Rental property owners follow the same claim process as homeowners.
Claim Your Florida Surplus Funds Before the Window Closes
Geoffery Pfeiffer, Florida Estate Planning Attorney
Money sitting with a county clerk does not grow or wait indefinitely. The homeowners who recover the most are usually the ones who check whether surplus funds exist before a recovery company finds them first.
At Lopez Law Group, we file surplus funds claims directly with Pinellas, Manatee, and Hillsborough county clerks for former homeowners across the Tampa Bay area. Call (727) 933-0015 to find out whether your foreclosure sale left money on the table.
Our Office Location
Lopez Law Group
700 7th Ave N Suite A
St. Petersburg, FL 33701
Phone: (727) 933-0015