What is a Surplus?
While many may be unaware, if you’ve recently lost your home or anything else to an outside party, you may be entitled to surplus funds. What exactly is a surplus? Keep reading to find out.
When the high bidder at a public auction bids in excess of the total amount of the plaintiff’s judgment, there is a surplus. For example, if you owed $500,000 on your mortgage at the time of the sale date, and the home sold in auction for $750,000, you are entitled to the excess funds of $250,000.
The party entitled to the surplus must apply to the court to recover the surplus funds. Florida Statutes limit the time for parties to file with the court to recover the surplus, so time is of the essence. Prior to applying for the funds, the party seeking recovery must perform its due diligence to ensure that the funds belong to the party and not to junior lien holders. Once the appropriate searches are performed, the party seeking recovery must file a motion with the court and appear at a formal hearing before a judge to request the funds.
If you believe that you may be entitles to surplus funds, please call us today at 954-957-4663 or email us to discuss your case.