Who Is Entitled to Surplus Funds After a Property Is Sold?
Who Is Entitled to Surplus Funds After a Property Is Sold?
When a property is sold at a foreclosure or tax deed auction in Florida, it’s possible the sale amount exceeds what was owed on the mortgage or taxes. That extra money, known as surplus funds, doesn't go to the lender or the county — it may belong to the former property owner or their heirs. But who exactly is entitled to claim it?
In this post, we break down who can legally claim surplus funds, how eligibility is determined, and what to do if you believe you’re owed money.
What Are Surplus Funds?
Surplus funds are the remaining proceeds from a foreclosure or tax deed sale after all debts have been paid. This includes the balance of the mortgage, tax liens, legal fees, and other associated costs. If the property sells for more than what’s owed, the leftover amount is deposited with the Clerk of Court (foreclosure) or county tax office (tax deed sales).
Who Can Claim Surplus Funds in Florida?
Florida law (specifically, Fla. Stat. § 45.032 for mortgage foreclosure and § 197.582 for tax deed sales) outlines who can file a claim. Here’s a breakdown:
1. The Former Property Owner
If your name was on the deed at the time the final judgment of foreclosure or tax deed was issued, you are the primary person entitled to any remaining surplus.
You must act quickly, as the county won’t hold these funds forever.
2. Heirs of a Deceased Owner
If the original homeowner has passed away, their legal heirs may claim the surplus funds. This often requires:
A probate case to be opened
Legal documentation proving heirship (will, Letters of Administration, or an intestate declaration)
Sometimes court hearings to establish proper entitlement
3. Spouses (Even if Not on Title)
In some cases, especially when homestead property is involved, a surviving spouse may have rights to a portion or all of the surplus funds. Florida recognizes strong protections for spouses — even if they weren’t listed on the deed.
4. Lienholders or Judgment Creditors
If other entities have legal claims on the property (like a second mortgage, HOA liens, or IRS liens), they may file to receive part of the surplus based on their lien priority. However, lienholders must file claims within specific timeframes, or they may lose their right to recover anything.
5. Assignees With Proper Documentation
In some cases, a former homeowner may assign their rights to a third party (like a surplus recovery firm). If the assignment is legally valid and properly recorded, the assignee may pursue the claim on behalf of the owner.
How the Court Determines Who Gets What
If multiple parties file claims, the court will review each claim and determine:
Who has the highest legal priority
Whether proper documentation has been provided
Whether the claims comply with deadlines
If no objections or competing claims exist, the process may be handled administratively through the Clerk’s office without a court hearing.
What Happens If No One Files a Claim?
If no valid claim is filed:
The funds may eventually be transferred to the State of Florida as unclaimed property
Recovery is still possible, but the process becomes longer and more difficult
Need Help Determining Your Eligibility?
At Visionary Surplus Recovery, we help:
Former homeowners
Heirs of deceased property owners
Surviving spouses
Claimants needing probate or legal assistance
We handle the entire claim process from start to finish, ensuring you’re fully represented, and we don’t charge any upfront fees. You only pay if we recover the funds for you.
Contact Us Today for a Free Case Review
If you’re unsure whether you qualify — or need help sorting through complex paperwork — we’re here to guide you.
Disclaimer: This blog is for informational purposes only and does not constitute legal advice. Always consult a licensed attorney for legal matters involving inheritance or surplus funds.
