Title/Lien Search - Foreclosure auction Final Judgement meaning

3 Replies

If there is a final judgement for a property in foreclosure auction that has the following statement, does it mean that if there are any liens or judgements against the property or owner that they go away and the successful bidder is not responsible for them?  For example, if there is a water bill that the foreclosed owner did not pay, would the successful bidder be responsible for it. This is from a foreclosure in the Sarasota County, FL. The statement in the final judgement is:

"If this property is sold at public auction, there may be additional money from the sale after payment of persons who are entitled to be paid from the sale proceeds pursuant to this Final Judgement.

"If you are subordinate lienholder claiming a right to funds remaining after the sale, you must file a claim with the Clerk no later than sixty (60) days after the sale. If you fail to file a claim, you will not be entitled to any remaining funds."

That is a surplus proceeds notification. Just alerting anyone that may have a claim, to make a claim within a timely manner, if there are any funds left over after the sale.

You are really asking two questions in your post. What does the surplus claims notification mean and, what happens to certain liens after the foreclosure sale.

The Final Judgement also states the following:

"On filing the certificate of sale, defendant(s) and all persons claiming under or against defendant(s) since the filing of the notice of lis pendens shall be foreclosed of all estate or claim in the property, except as to claims or rights under chapter 718 or chapter 720, Florida Statues, if any."

As @Ron S. pointed out, one has nothing to do with the other.  Essentially, any recorded junior liens get wiped out by the 1st mtg foreclosure, regardless of whether they receive any surplus funds or not.....usually there are none.

Some utilities usually stick with the property (water) others do not (electricity).

There is also boiler plate language you’ll see in FL judgments that say “....this lien is superior to all others....” which also means nothing.

Your best bet is to have a title search done on the property, and someone knowledgeable explain to you what it means.

You typically may have unrecorded code violations to deal with, current/recently property taxes to be paid. Very rarely are there any surplus funds that could Potentially be applied to this. In an HOA foreclosure auction, all surplus funds go the previous owner, regardless of other mtgs/liens...in FL.