St Lucie West, FL · Member since 2017 · 11 posts · 0 votes
I’ll try to keep it brief. We won a foreclosure and the surplus is in excess of $30k. Last years taxes and this years’ are unpaid. Can we lay claim to these funds? The 2018 taxes were paid for via tax certificate but still unpaid as far as we are concerned when we go to sell. Can I motion for a disbursement to these funds to clear up the tax certificate holder? Should I contact them directly? Any help in this matter would be greatly appreciated. Should I create my own lien on the property I now own?
We are planning on selling it after a small rehab.
45.032 Florida Statutes says the surplus funds belong to the owner of record at the time the lis pendens was filed if there are no other lienholders who timely filed a claim (within 60 days after the sale). A tax lien is not subordinate and the lien survives the sale so they have no need to file a claim.
You have no right to the funds whatsoever, but I have seen more than once third party bidders successfully claim surplus funds, so it won't hurt to try. Just know that if the owner is out there they could certainly use and probably need that money when you should have accounted for it when you were bidding. There should be a hearing and the judge will decide.
@Cassie Montalvo I saw your post minutes ago and almost posted this same reply until I saw it was from 5 months ago. The heirs can still claim it I believe they have a year or 2 before the state takes it. A trustee gets appointed to find the owners and help them claim it for a 12% commission. There's also tons of private investigators out there who aggressively search for these to take advantage of the uneducated or elderly homeowner.
Hi Cheryl, it seems someone bumped my thread where I had the same exact question ... even in FL!
The only people who can put in a claim for surplus funds had to be listed as junior lien holders / defendants in the original foreclosure. You have no rightful claim to those funds (sucks, I know, see my thread).
Taxes cannot be paid from a foreclosure auction. Taxes are superior to a foreclosure so they will never be listed as a subordinate lien holder (as their lien will not be wiped, regardless of a surplus or not). Just remember the hierarchy of liens in Florida and that with foreclosures, money (paying off) and extinguishing liens and claims only goes DOWNWARD on the hierarchy, not upward (does not affect the senior liens).
45.032 Florida Statutes says the surplus funds belong to the owner of record at the time the lis pendens was filed if there are no other lienholders who timely filed a claim (within 60 days after the sale). A tax lien is not subordinate and the lien survives the sale so they have no need to file a claim.
You have no right to the funds whatsoever, but I have seen more than once third party bidders successfully claim surplus funds, so it won't hurt to try. Just know that if the owner is out there they could certainly use and probably need that money when you should have accounted for it when you were bidding. There should be a hearing and the judge will decide.
@Cassie Montalvo I saw your post minutes ago and almost posted this same reply until I saw it was from 5 months ago. The heirs can still claim it I believe they have a year or 2 before the state takes it. A trustee gets appointed to find the owners and help them claim it for a 12% commission. There's also tons of private investigators out there who aggressively search for these to take advantage of the uneducated or elderly homeowner.
Just to add, the taxes last year were purchased as a tax certificate by someone. My attorney mentioned to have them try to go after the funds so we don’t have to pay taxes for last year. Does this make any difference? In the final judgement paperwork it mentions something about tax warrants being able to get surplus funds.
Yes absolutely... They hold a valid lien and can certainly file a claim on the surplus. It just needs to be brought to their attention. Just keep in mind filing a claim might be more costly for them than pursuing a tax deed sale, so maybe if you offer to pay their legal fees to file the claim they might be ok with it.
@Cheryl Olson if they hold a tax lien and they don’t want to sue to get the surplus, they can file a TDA against you, well the property. You should settle this before the liens mature.