FL - Surplus funds after auction and a tax lien?

Question

Hello all,

I have successfully purchased several foreclosures at auction, so this isn't my first rodeo, but it is my first time with this particular situation and I was hoping someone had some insight...

Property location: Palm Beach County, Florida

HOA foreclosure (no mortgage) lien was about $10,000

I paid about $100,000 for the home

Roughly a $90,000 surplus now

Tax liens exist and amount to roughly $10,000

Property owner deceased and no heirs were located

Tax liens were not specifically identified as a defendant, just the generic "and all other parties claiming by, through, under..." etc. to previous property owner and/or actual property was listed as defendant

I budgeted $10k to pay for the tax liens, but ... since there is a $90,000 (approx.) surplus from the HOA foreclosure auction, is there any way to have the surplus pay for the tax liens?  This is wishful thinking about would obviously be fantastic.

Thanks!

Cassie Montalvo · Answer

@Cheryl Olson

Alicia Colon · Answer

@Cassie Montalvo

I understand now. Still learning!

& you are absolutely right about the money just sitting there! That’s crazy when you really think about it.  At least you made an attempt to reach out... it blows my mind that they were not interested in pursuing it.

Still congrats on your sale! I hope to do the same in the future ! Still saving.  I have only have about 5k saved. I think I’ll definitely need to save a lot more before I start dabbling in real estate.

Thanks for responding!

Have a great day!

Alicia

Cassie Montalvo · Answer

@Alicia Colon The surplus belongs to the owner of record at the time of the foreclosure (the previous owner) and any subordinate lien holders also have the ability to claim the surplus - I would not be entitled to any of it.

That all being said, I paid the back-taxes, which was always the plan.  I tried to do the right thing and called and heir (because the previous owner had passed away) and told them to get a lawyer and claim the surplus but they didn't :(

$90,000 unclaimed ... so sad ... but also frustrating that the state holds that money and for some reason they can't take that to pay for the back taxes!!!

Alicia Colon · Answer

Hi Cassie! Bit of a late response but wouldn't you be able to pay for the tax liens out of pocket and then submit a claim for refund from the surplus money ? Or were they able to use the surplus money without you having to pay out any additional money ? I'm curious to know how it worked out for you!

Rita Medeiros · Answer

@Cassie Montalvo Come to our women’s group June 26 in ft Lauderdale listed on events page.