Florida’s Surplus Funds Claim Process: What the Statutes Actually Say

If you’re trying to claim surplus funds after a foreclosure or tax deed sale in Florida, it’s important to understand the laws that govern the process. The two main statutes involved are:

• Florida Statute 45.032 (for mortgage foreclosure surplus funds)

• Florida Statute 197.582 (for tax deed sale surplus funds)

These laws outline who can claim the funds, how long you have, and what the courts require. In this post, we’ll break each statute down in plain language so you know exactly what your rights are — and how to protect them.

1. Florida Statute 45.032 – Mortgage Foreclosure Surplus Funds

This statute covers surplus funds generated when a property is sold at a mortgage foreclosure auction.

Key Points of Fla. Stat. 45.032:

• Who Gets the Money First?
  The funds go to any lienholders first (such as a second mortgage or HOA). Once all claims from lienholders are paid, the remaining funds are considered a surplus and are available to the former homeowner.

• Who Can Claim Surplus?
  The “owner of record” at the time the foreclosure judgment was entered — or their heirs — is entitled to claim the remaining surplus funds.

• Deadline to Claim Funds:
  The statute does not set a hard deadline, but if no one claims the funds after a period of time, they may be transferred to the State of Florida as unclaimed property.

• What if There Are Multiple Claimants?
  If multiple people or entities claim the surplus, the court may conduct a hearing to determine who is legally entitled to it.

• Assignments:
  A property owner may assign their right to the surplus funds to another party (such as a surplus recovery firm), but the court must approve the assignment.

In Summary:

Florida Statute 45.032 protects both lienholders and former owners. It requires a proper legal process to distribute surplus funds and gives the court the final say in disputed claims.

2. Florida Statute 197.582 – Tax Deed Surplus Funds

This statute applies when surplus funds are generated from a tax deed sale, typically due to unpaid property taxes.

Key Points of Fla. Stat. 197.582:

• Who Can Claim Surplus?
  Former property owners, their heirs, lienholders, or assigned representatives.

• Claim Filing Deadline:
  According to the statute, claims must be filed within 120 days of the Clerk issuing a notice that surplus funds are available.

• After 120 Days:
  If no claim is filed, the Clerk transfers the surplus funds to the Florida Department of Financial Services – Division of Unclaimed Property.
  You can still claim them later through the state, but the process is slower and more complex.

• Priority of Claims:
  Just like with mortgage foreclosures, lienholders have priority. The court or Clerk distributes surplus funds in order of lien priority.

• No Court Hearing Required (Usually):
  Many tax deed surplus claims are processed administratively through the Clerk’s office, meaning you may not need to go to court, as long as the claim is uncontested and complete.

In Summary:

Florida Statute 197.582 sets clear deadlines and procedures. Missing the 120-day window means your claim shifts to the state level — which is still possible but less efficient.

Why This Matters

Surplus funds can be tens of thousands of dollars, but Florida law requires you to:

• File within deadlines

• Submit legally valid documentation

• Navigate lien priorities, probate issues, or multiple claims

Trying to interpret these statutes without experience can lead to costly mistakes or missed opportunities.

Let Professionals Handle the Legal Work

At Visionary Surplus Recovery, we handle:

• Determining your eligibility under both statutes

• Preparing and submitting your claim

• Partnering with attorneys for court filings when required

• Ensuring your claim is timely and legally sound

We don’t charge upfront and only get paid if we successfully recover your funds.

📞 Have Questions About Florida’s Surplus Laws?
Let our team review your case at no cost.

Disclaimer: This content is for informational purposes only and does not constitute legal advice. For formal legal opinions, consult a licensed Florida attorney.