What Are Surplus Funds?
When a property is sold at a foreclosure auction or tax deed sale for more than what is owed to the lender or government — the difference is called "surplus funds." In Florida, these surplus funds are held by the clerk of court and must be claimed by the former property owner or other parties with a legal interest in the property.
Many property owners are completely unaware that surplus funds exist — or they miss the deadline to claim them. At Hernandez Legal, P.A., we identify these funds on your behalf and guide you through the entire claim process efficiently and professionally.
"Thousands of Florida homeowners are owed surplus funds from foreclosure and tax deed sales — and never collect them simply because they did not know they existed or how to claim them."
How Surplus Funds Are Created
- Foreclosure Sales — When a lender forecloses and the property sells at auction for more than the outstanding mortgage balance, taxes, and fees, the excess belongs to the former owner.
- Tax Deed Sales — When a county sells a property for unpaid property taxes and the sale price exceeds the tax debt owed, surplus funds are generated for the prior owner.
- Other Involuntary Sales — Certain HOA, municipal lien, and other judgment sales can also generate surplus funds.
Our Surplus Funds Recovery Process
- Free Case Review — We review your property records and court files to confirm surplus funds exist and determine the amount available for claim.
- Eligibility Determination — We identify all parties with a legitimate claim to the funds, including former owners, junior lienholders, and heirs.
- Document Preparation — We prepare and file all required motions, claims, and supporting documentation with the court on your behalf.
- Court Representation — If a hearing is required, we appear in court and advocate for your claim against any competing claimants.
- Funds Disbursement — Once the court approves the claim, funds are released to you. We handle all follow-up with the clerk's office.
Important Deadlines
In Florida, there are strict deadlines for claiming surplus funds. For foreclosure surplus funds, former owners typically have one year from the date of the sale to file a claim. After that, the funds may be transferred to the state. Acting quickly is critical — contact us as soon as you become aware of a potential claim.
Who Can Claim Surplus Funds?
- Former property owners (most common)
- Heirs or estate of a deceased former owner
- Junior lienholders (second mortgages, HOA liens, judgment creditors)
- Parties with a recorded legal interest in the property at time of sale
Frequently Asked Questions
You may be owed surplus funds if you previously owned a property that was sold at a foreclosure or tax deed auction in Florida. We can research the public court records for your property at no charge to determine if surplus funds exist and whether you are entitled to claim them.
In most surplus funds cases we work on a contingency basis — meaning you pay no upfront legal fees. Our fee is a percentage of the funds we successfully recover for you. We will explain our fee structure clearly before you engage our services.
Many third-party surplus funds "recovery companies" are not attorneys and charge very high percentages — sometimes 30–50% of your funds. You have the right to hire an attorney instead and typically pay far less. Contact us before signing any agreement with a non-attorney recovery company.
Yes. Heirs and estate representatives can claim surplus funds on behalf of a deceased former owner, though the process may require additional steps such as opening a probate estate. We handle both the surplus funds claim and any related probate needs together.