Mortgage Foreclosure Surplus Funds

In this day and age, property values in Florida are soaring. For those that were in dire straits years ago, a foreclosure auction could result in a significant bidding by investors that can, in turn, lead to a significant payment for your home. Many homeowners call my office asking what happens when a bidder pays more than the judgment on their home. Here, I’ll attempt to guide you through that process. Note: in this post I use the term Mortgage Foreclosure Surplus Funds, this can equally apply to any sale (tax deed, HOA foreclosure, Condominium Foreclosure, etc.)

Step One: Mortgage Foreclosure Judgment

The first step to claiming your mortgage foreclosure surplus funds is the entry of a final judgment. This is what allows the creditor (again, Mortgage Company, HOA, Lien Holder, etc) to sell the property at a judicial sale. Once this is entered, you’re likely to have a lot of investment companies interested in your property. You may notice an increase in phone calls, an increase in visits to your home, or in some situations, people telling you your home is involved in a foreclosure auction.

Step Two: Mortgage Foreclosure Sale

In many counties throughout Florida, the auction will occur online. In some counties, it is still an in-person auction. You’ll see bidders from everywhere that want to own your home. In some instances, the bank may buy it back at the sale. The best advice I can give here is that you can’t control the outcome here. It may have happened without you knowing that the home was being sold.

Step Three: Bid Amount Exceeds Foreclosure Judgment Amount

This part is the most straight forward. In order to have a surplus, the winning bid must be more than the judgment amount. For example, if you have a judgment for $10,000.00, only a bid of $10,000.01 or greater can result in mortgage foreclosure surplus funds. This is, of course, subject to the claims of other creditors (2nd mortgages, HOA liens, etc.) After the sale, you have to claim the surplus funds. This is called a request for a disbursement. It will be up to the judge to grant – but, if you are successful you can receive your mortgage foreclosure surplus funds.

Need Free Help?

Does this all seem too technical for you to manage? I will gladly handle your Mortgage Foreclosure Surplus Funds claim at no upfront cost to you. I’ve had success throughout the state eliminating adverse surplus claims as well negotiating surplus funds claims which benefit my clients. Interested in speaking with me? Depending on the complexity of your mortgage foreclosure surplus fund claim, I’ll charge between a 10% – 25% contingency fee. Call me today at 813.502.6768, or set up a consultation now.

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Bryant H. Dunivan Jr., Esq.

Partner at Owen & Dunivan, PLLC
Attorney Bryant Dunivan is a foreclosure, real estate, and consumer protection attorney who focuses his efforts on making his clients feel like people and not just a file. Just Served? I offer a free consultation. Contact me today.