Surplus Funds After a Florida Mortgage Foreclosure Sale

If a Florida property sold at a mortgage foreclosure auction for more than what was owed, the former owner may be entitled to claim what's left over. Florida law presumes the former owner is entitled to that surplus, but there's a process and a deadline. Here is generally how it works.

What surplus funds actually are

A mortgage foreclosure sale is a public auction held after a court enters a final judgment of foreclosure. When the winning bid brings in more than what's required to satisfy the judgment and other disbursements set out in the final judgment, the extra amount is surplus. Under Florida Statute 45.032, the clerk of court holds these funds rather than the winning bidder or the foreclosing lender keeping the excess.

Who is presumed entitled to the surplus

F.S. 45.032 establishes a rebuttable legal presumption that the owner of record as of the date the lis pendens was filed, generally the homeowner at the time the foreclosure case began, is the person entitled to the surplus, once any subordinate lienholders who timely filed a claim are paid. A subordinate lienholder can include a second mortgage, a judgment lien, a tax warrant, or a homeowners' association lien, among others. Someone claiming the surplus as an assignee of the original owner's rights has to prove that claim to the court; the statute explicitly overrides the older common-law rule that simply being the owner on the date of sale controlled who got the surplus.

Notice, the claim process, and the one-year deadline

Florida's final judgment of foreclosure statute, F.S. 45.031, requires the judgment itself to include a conspicuous notice about potential surplus funds, and an additional notice if the property carried a homestead exemption, explicitly telling the owner they can claim the funds directly without a lawyer or assigning their rights to anyone. Under F.S. 45.032, an owner of record can file a sworn statement of claim with the clerk using a form the statute provides. If another party also claims an interest, the court may hold a hearing to sort out entitlement. One year after the sale, any surplus that hasn't been claimed and disbursed is presumed unclaimed and reported to the state as unclaimed property, though it generally remains something the rightful owner can pursue afterward through the state's unclaimed property process.

Where this fits for a current property owner

Surplus funds only become relevant after a foreclosure sale has already taken place; by that point, the property is gone. If a property you currently own is at risk of foreclosure but a sale hasn't happened yet, meaningfully more options are still available. See our guide on selling a house in pre-foreclosure in Florida for how that earlier timeline works, and how a sale before judgment compares to letting the process run its course. A tax deed sale creates a similar surplus-funds situation through a different process; see our guide on tax deed sale surplus funds in Florida for how that separate mechanism works.

Frequently asked questions

What are surplus funds from a Florida mortgage foreclosure sale?

When a foreclosed property sells at auction for more than what's needed to pay off the foreclosure judgment and any other required disbursements, that extra money is surplus. Under F.S. 45.032, the clerk of court holds these funds, and Florida law establishes a rebuttable legal presumption that the owner of record as of the date the lis pendens was filed is the person entitled to the surplus, after any subordinate lienholders who timely filed a claim are paid.

Am I entitled to surplus funds if my house was sold in foreclosure?

You may be, if you were the owner of record when the lis pendens was filed and a surplus remains after subordinate lienholders, such as a second mortgage or a judgment lien, are paid. Florida's final judgment of foreclosure is required to include a notice about potential surplus funds, and if the property had a homestead exemption, an additional notice explaining that the owner can claim the funds directly without a lawyer or assigning their rights to anyone.

How do I claim foreclosure surplus funds, and is there a deadline?

Under F.S. 45.032, an owner of record can file a claim with the clerk of court, and the statute provides a sworn claim form for this purpose. If a subordinate lienholder or another party also claims an interest, the court may need to hold a hearing to determine who's entitled to the funds. One year after the sale, any undisbursed surplus is presumed unclaimed and reported to the state as unclaimed property, though it generally remains claimable through the state's unclaimed property process afterward.

What if I currently own a Florida property at risk of foreclosure?

Surplus funds only become relevant after a foreclosure sale has already happened. If a property is still in the pre-foreclosure stage, there are meaningfully more options available, including talking to your lender and potentially selling before a judgment is entered. See our guide on selling a house in pre-foreclosure in Florida for how that earlier timeline works.

Still own a Florida property and worried about reaching a foreclosure sale? Call OfferLink at 407-584-9111. We buy as-is across Florida, including Osceola County, St. Johns County, and Sumter County. This article is general information, not legal advice. Contact the clerk of court in the relevant county, or a Florida real estate attorney, to pursue a specific surplus funds claim.