Monroe County Florida Foreclosure Surplus Funds – Official Homeowner Guide
Introduction
This guide explains how foreclosure surplus funds are created, held, and claimed in Monroe County, Florida following a judicial foreclosure sale. It is written for former homeowners, heirs, estates, and authorized claimants seeking clear, court-accurate information on recovering excess proceeds from a foreclosure auction.
Under Florida Statute §45.032, surplus funds generated from a foreclosure sale do not belong to the foreclosing lender. Any funds remaining after payment of the final judgment, court costs, and lien priorities are payable to the former property owner or other legally entitled parties.
In Monroe County, these funds are typically held in the court registry by the Monroe County Clerk of Court & Comptroller until a verified claim is reviewed and approved. Disbursement is subject to court order when required.
Important clarification: This page addresses foreclosure surplus funds only. If you are searching for Monroe County tax deed surplus funds, visit the county’s tax deed surplus page. For foreclosure surplus funds, continue reading below.
What Are Foreclosure Surplus Funds Under Florida Law?
Foreclosure surplus funds—also called excess proceeds—are created when a property sells at a judicial foreclosure auction for more than the total amount owed under the final judgment.
Under Florida Statute §45.032:
Surplus funds belong to the former owner as of the date of the lis pendens, unless a valid junior lienholder or assignee has priority.
The foreclosing bank does not receive the surplus.
Funds are deposited into the court registry and released only after proper claim review.
These proceeds are commonly referenced by clerks as judicial foreclosure sale proceeds and require verified claim documentation before release.
How Surplus Funds Are Created in Monroe County
Judicial Foreclosure Sales
Most surplus funds in Monroe County arise from mortgage foreclosure sales conducted through the civil courts. When competitive bidding exceeds the judgment amount, the remaining balance becomes surplus.
HOA and Lien Foreclosures
Homeowners’ association (HOA) and condominium lien foreclosures may also generate surplus funds. Even though the initiating lien may be smaller, bidding activity can still create excess proceeds payable to the former owner, subject to lien priority.
Step-by-Step: How to File a Surplus Funds Claim in Monroe County
1. Where Surplus Funds Are Held
After the foreclosure sale, any excess proceeds are deposited with the Monroe County Clerk of Court & Comptroller and recorded as funds held in the court registry.
2. Required Claim Forms
Claimants must submit a verified surplus funds claim that generally includes:
Claim form or motion for disbursement
Government-issued photo ID
Proof of ownership or interest
Assignments (if applicable)
Probate documents (if the owner is deceased)
3. Documentation Review
The Clerk’s Civil Court Services Division / Foreclosure Department reviews submissions for completeness and compliance. In some cases, the court may require additional affidavits or a hearing.
4. Filing Deadlines
Florida law imposes statutory timelines. Claims filed after deadlines may be denied or subordinated to other interests.
5. How Checks Are Issued
Once approved, funds are released by check or wire, depending on court authorization and claimant instructions. All disbursements must follow clerk and court procedures.
Why Surplus Funds Claims Get Denied in Monroe County
Common denial or delay reasons include:
Incorrect or missing documentation
Probate not opened or completed
Improper or non-compliant assignment agreements
Competing claims or unresolved liens
Filing after statutory deadlines
Claims initially filed without professional representation that later require correction, amendment, or litigation may be subject to modified recovery terms, including higher fees, due to the additional work required.
Probate & Heirs: What Happens If the Owner Is Deceased
If the former owner is deceased, the Clerk cannot release funds without proper legal authority.
When Probate Is Required
Probate is typically required when:
The owner died before or after the foreclosure sale
Multiple heirs exist
No recorded survivorship deed applies
Summary vs. Formal Administration
Summary administration may apply for smaller estates
Formal administration may be required for complex estates
Without probate authority, surplus funds remain in the court registry.
Major Cities, Urban Areas & Neighborhoods in Monroe County
Cities and Municipalities
Key West
Marathon
Islamorada
Key Largo
High-Foreclosure & HOA-Heavy Areas (Examples)
Condominium corridors along US-1
Older waterfront subdivisions
Resort-adjacent HOA communities
Common Foreclosure Street Patterns
Overseas Highway (US-1) corridors
Marina-adjacent residential streets
Canal-front neighborhoods
Major Institutions
Monroe County Courthouse (Key West)
Mariners Hospital
Fishermen’s Community Hospital
Local veterans’ clinics and regional medical centers
Filing a Claim Yourself vs. Using a Professional Recovery Firm
Filing Yourself
Time-consuming
High rejection risk for technical errors
Probate exposure
Limited clerk guidance
Using a Professional Firm
Attorney-managed filings
Clerk-compliant documentation
Probate coordination included
Reduced denial risk
This comparison is informational only and not a guarantee of outcome.
What Happens If You Do Nothing
If no valid claim is filed:
Funds may eventually escheat under state law
Junior lienholders may intervene
Claims become more complex and costly over time
Pre-Foreclosure Help in Monroe County (Before Auction)
If your Monroe County property has not yet gone to foreclosure auction, you may still have options to:
Stop foreclosure
Sell your house fast
Receive a cash offer before foreclosure
Sell as-is and close in as little as 7 days
Through Visionary Estates UPP LLC, distressed homeowners can preserve equity before auction.
Call or text David – Cash Acquisitions Manager 📞 813-335-8082 ✉️ cashoffers@visionarysurplusrecovery.com
Why Homeowners Choose Visionary Surplus Recovery
Visionary Surplus Recovery operates as the Equity Surplus Claims Department, assisting former homeowners, heirs, and estates with:
Attorney-managed claims
Clerk-compliant filings
Probate included when required
No upfront fees
Faster processing and fewer denials
What Happens After You File a Claim
Clerk review of verified documentation
Court approval if required
Distribution by check, wire, or approved electronic method
Timelines vary by case complexity and court scheduling.
Frequently Asked Questions About Surplus Funds in Monroe County
How long does it take to receive surplus funds?
Most claims are resolved within several weeks to a few months, depending on court involvement.
Does the bank get the surplus?
No. The surplus belongs to the former owner or eligible claimant.
Can I file the claim myself?
Yes, but errors frequently cause delays or denials.
What if multiple heirs exist?
Probate or court direction is usually required.
Are surplus funds taxable?
Tax treatment varies. Consult a tax professional.
Internal Resources for Homeowners
Homeowners may also benefit from reviewing the Florida foreclosure surplus funds guide, neighboring county procedures, the Probate & Heirs Surplus Funds Guide, the Free Surplus Eligibility Tool, and options to sell your home fast in Monroe County before foreclosure through equity protection programs.
