Short answer
If your Florida home was sold in a judicial foreclosure and there is surplus money left after the sale, you have up to one year to claim it directly from the clerk of court. After one year, any unclaimed surplus is sent to the Florida Department of Financial Services as unclaimed property, but it is not lost—you may still claim it from the state if you are the owner of record or the beneficiary of a deceased owner.
Why it matters
Foreclosure is stressful, and many homeowners are unaware that they may be entitled to surplus funds if their property sells for more than the amount owed. Missing the opportunity to claim these funds can mean losing out on thousands of dollars that could help you move forward. Understanding the process and timing ensures you do not leave money behind, especially since the surplus is not automatically sent to you—you must take action to claim it.
- The surplus is not held by your lender or their attorney; it is held by the clerk of the circuit court.
- If you do not claim the surplus within one year, it is transferred to the state’s unclaimed property program, but you can still claim it there if you qualify.
- Only the owner of record as of the date the lis pendens was filed (or their beneficiary if deceased) can claim the surplus after it becomes unclaimed property.
Steps
Here is how to claim foreclosure surplus funds in Florida:
Confirm the type of foreclosure Florida uses a judicial foreclosure process. The court enters a final judgment of foreclosure, and the sale is conducted by the clerk of the circuit court. This guide does not cover tax-deed surplus, which is a separate process.
Check for surplus funds After the foreclosure sale, find out if the sale price exceeded the total owed (including judgment, interest, and costs). Any extra is the surplus.
Understand the distribution order The clerk of court first pays amounts required by the final judgment. Next, any subordinate lienholder who filed a timely claim is paid. Finally, the owner of record as of the date the lis pendens was filed is eligible for any remaining surplus.
File a claim with the clerk of court You may claim the surplus directly from the clerk of court. You do not need a lawyer or anyone else to do this, but you may choose to seek help if you wish.
Act within one year You have up to one year after the foreclosure sale to claim the surplus from the clerk of court. After one year, any surplus still held by the clerk is presumed unclaimed and sent to the Florida Department of Financial Services as unclaimed property.
If more than one year has passed The surplus is not lost. It moves to the state’s unclaimed property program. Only the owner of record or the beneficiary of a deceased owner may claim it from the Department. Cruz Law Firm can represent former owners or beneficiaries in making claims to the Department, if desired.
Example
Example scenario:
Suppose your home in Florida was sold at a judicial foreclosure sale for $250,000. The total amount owed under the final judgment (including the mortgage, interest, and court costs) was $230,000. There were no subordinate lienholders who filed a timely claim.
- The $20,000 surplus is held by the clerk of the circuit court.
- You, as the owner of record as of the date the lis pendens was filed, may file a claim with the clerk to receive the $20,000.
- If you do not claim it within one year, the clerk will send the surplus to the Florida Department of Financial Services as unclaimed property. You may still claim it from the Department, but only if you are the owner of record or the beneficiary of a deceased owner.
Need help with a surplus claim?
You can file directly with the clerk of court, or contact Cruz Law Firm if you want legal guidance—especially if the surplus has already been sent to the Department of Financial Services.
Common pitfalls
- Missing the one-year window with the clerk of court: While you do not lose the right to the funds, the process becomes more involved after the surplus is sent to the Department of Financial Services.
- Confusing foreclosure surplus with tax-deed surplus: These are different processes with different rules and deadlines.
- Assuming the lender or their attorney holds the surplus: Only the clerk of the circuit court holds the surplus after a judicial foreclosure sale.
- Not understanding the distribution order: Subordinate lienholders who file timely claims are paid before the owner of record.
- Assigning rights without understanding the limits: If you assign your rights to a surplus recovery company or other assignee, Florida law caps their total compensation at 12 percent of the surplus.
Summary
- Florida is a judicial foreclosure state; the court enters a final judgment and the clerk of the circuit court conducts the sale.
- Any surplus is held by the clerk of court, not the lender or their attorney.
- The surplus is distributed first to amounts in the final judgment, then to subordinate lienholders who file timely claims, then to the owner of record as of the date the lis pendens was filed.
- You have one year after the sale to claim the surplus from the clerk; after that, it is sent to the Florida Department of Financial Services as unclaimed property, but you may still claim it from the state if you qualify.
- Next steps: Check with the clerk of court in the county where your property was sold to see if surplus funds are available, and consider whether you want to file a claim yourself or seek legal guidance if the funds have already been sent to the Department.
This page provides general information and does not create an attorney-client relationship.
Important information
Attorney advertising. Responsible attorney: Christian Cruz, Esq. Office: CRUZ LAW FIRM, 160 W Camino Real, 589, Boca Raton, FL, 33432.
Florida law does not require you to hire a lawyer or anyone else to claim foreclosure surplus funds. A former owner may file a claim with the clerk of court directly, and does not have to assign their rights to anyone to do so.
This page is general information about Florida law, not legal advice. Reading it does not create an attorney-client relationship, and no such relationship is formed until we have a signed written agreement.
Fee arrangements depend on the posture of the matter and are set out in a written agreement before any work begins. We are glad to explain how fees would work in your situation when we speak.
FAQ
Who holds the foreclosure surplus funds in Florida?
After a judicial foreclosure sale in Florida, any surplus funds are held by the clerk of the circuit court in the court registry—not by the lender or their attorney.
What happens if I do not claim the surplus within one year?
If you do not claim the surplus within one year after the sale, the clerk of court sends the funds to the Florida Department of Financial Services as unclaimed property. You may still claim the funds from the Department if you are the owner of record or the beneficiary of a deceased owner.
Do I need a lawyer to claim foreclosure surplus funds in Florida?
No, Florida law allows the owner of record to claim surplus funds directly from the clerk of court. You may choose to seek legal help, but it is not required.
What is the order of distribution for foreclosure surplus funds?
The clerk of court pays amounts required by the final judgment first, then any subordinate lienholder who filed a timely claim, and finally the owner of record as of the date the lis pendens was filed.
Is the process different for tax-deed sales?
Yes, tax-deed surplus is a separate process with different rules and deadlines. This page covers only judicial foreclosure surplus.