Short answer
If your Florida home was sold in a judicial foreclosure and the sale price was higher than the total owed, there may be surplus funds held by the clerk of court. You can check the court records and contact the clerk of the circuit court to find out if a surplus exists and whether you, as the former owner, may claim it.
Why it matters
Foreclosure is difficult, but if your property sold for more than the debt and costs, you may be entitled to surplus funds. These funds can provide important financial relief after losing a home. Failing to identify or claim a surplus means you could miss out on money that rightfully belongs to you, and after one year, the process for claiming it changes.
- Surplus funds can help with moving expenses, paying off other debts, or starting over.
- If not claimed, the surplus is eventually transferred to the Florida Department of Financial Services as unclaimed property, making the process more complex.
- Understanding your rights helps you avoid scams and unnecessary fees.
Steps
Follow these steps to find out if you are owed surplus funds after a Florida foreclosure:
Confirm the type of foreclosure Florida uses a judicial foreclosure process. This means a court enters a final judgment of foreclosure, and the sale is conducted by the clerk of the circuit court. This page does not cover tax-deed sales, which are a separate process with different rules.
Check the final judgment and sale records Look up your case in the online records of the circuit court where the foreclosure took place. Search for the final judgment of foreclosure and the certificate of disbursements or certificate of sale. The final judgment will state the amounts to be paid from the sale proceeds.
Determine if a surplus exists If the property sold for more than the total owed (including principal, interest, fees, and costs), the extra amount is called the surplus. The surplus is held by the clerk of court in the court registry. It is not held by the lender or their attorney.
Understand the order of distribution The clerk of the circuit court pays out funds in this order: Amounts the final judgment directs the clerk to pay (such as the lender’s judgment and court costs) Subordinate lienholders who filed a timely claim The owner of record as of the date the lis pendens was filed (usually the former homeowner)
Contact the clerk of court Ask if there is a surplus in your case and how to file a claim. The clerk can provide forms and instructions. You do not need a lawyer or anyone else to claim a surplus, but you may choose to seek help if you wish.
File your claim Complete the required form and submit it to the clerk of court. Include proof of your identity and your status as the owner of record as of the date the lis pendens was filed.
Be aware of the one-year rule One year after the sale, any surplus still held by the clerk is presumed unclaimed and is sent to the Florida Department of Financial Services as unclaimed property. The money is not lost; it moves to the state’s unclaimed property program. From then on, only the owner of record or the beneficiary of a deceased owner may claim it, and the claim is made to the Department, not the clerk.
Example
Example (for illustration only):
Suppose your home was sold at a judicial foreclosure sale for $320,000. The final judgment stated that $290,000 was owed to the lender, plus $5,000 in court costs and fees. The total owed was $295,000. After paying the lender and costs, there is a $25,000 surplus. The clerk of the circuit court holds this surplus in the court registry. If no subordinate lienholder files a timely claim, you, as the owner of record as of the date the lis pendens was filed, may claim the $25,000 surplus by filing with the clerk. If you do not claim it within one year, the funds are sent to the Florida Department of Financial Services as unclaimed property, and you would then claim it from the Department.
Tip: Always verify the surplus amount with the clerk of court and follow their instructions for filing a claim. If the surplus has already been sent to the Department of Financial Services, only the owner of record or the beneficiary of a deceased owner may claim it.
Common pitfalls
- Assuming the lender holds the surplus: The surplus is always held by the clerk of court, not the lender or their attorney.
- Missing the one-year transfer: If you wait more than one year after the sale, your claim must go through the Florida Department of Financial Services, not the clerk.
- Confusing foreclosure surplus with tax-deed surplus: Tax-deed surplus is a separate process not covered here.
- Not checking for subordinate lienholders: If a subordinate lienholder files a timely claim, they may be paid before you.
- Paying unnecessary fees: You do not need to pay anyone to claim your surplus. If you choose to assign your rights, the total compensation to an assignee cannot exceed 12 percent of the surplus.
- Not verifying your status as owner of record: Only the owner of record as of the date the lis pendens was filed (or their beneficiary, if deceased) can claim the surplus.
Summary
- Florida is a judicial foreclosure state; the court enters a final judgment and the clerk of court conducts the sale.
- Any surplus from the sale is held by the clerk of the circuit court, not the lender.
- The clerk pays out funds first to those named in the final judgment, then to subordinate lienholders with timely claims, then to the owner of record as of the lis pendens date.
- After one year, unclaimed surplus is sent to the Florida Department of Financial Services as unclaimed property, but it can still be claimed by the owner of record or the beneficiary of a deceased owner.
- Next steps: Check your court records for a surplus and contact the clerk of court to ask about the process for filing a claim.
- If the surplus has already been sent to the Department, you may still claim it as the owner of record or as a beneficiary if the owner has died.
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 surplus funds after a Florida foreclosure sale?
The surplus is held by the clerk of court in the court registry, not by the lender or their attorney.
How long do I have to claim surplus funds from the clerk of court?
After one year from the sale, any surplus still held by the clerk is sent to the Florida Department of Financial Services as unclaimed property. The money is not lost, but the process for claiming it changes.
Who can claim the surplus funds?
After subordinate lienholders with timely claims are paid, the owner of record as of the date the lis pendens was filed may claim the surplus. If the owner has died, their beneficiary may claim it.
Do I need a lawyer to claim surplus funds?
No, you do not need a lawyer or anyone else to claim surplus funds from the clerk of court. However, you may choose to seek help if you wish.
What if the surplus funds have already been sent to the Florida Department of Financial Services?
If the surplus has been sent to the Department as unclaimed property, only the owner of record or the beneficiary of a deceased owner may claim it, and the claim is made to the Department, not the clerk of court.