Short answer
If your Florida home was sold in a judicial foreclosure and the sale brought in more than was owed, the surplus funds are held by the clerk of court—not the lender. As the former owner, you may claim these funds directly from the clerk of the circuit court, but there are important rules and deadlines to understand.
Why it matters
Losing a home to foreclosure is difficult, but if the sale price exceeded the debt and costs, you may be entitled to surplus funds. Recovering this money can help you move forward, cover relocation expenses, or address other financial needs. However, if you do not act within the proper timeframe, the surplus will be transferred to the Florida Department of Financial Services as unclaimed property after one year. Knowing the process and your rights ensures you do not miss out on funds that could make a real difference.
Steps
Florida is a judicial foreclosure state. That means a court must enter a final judgment of foreclosure before the property is sold, and the sale itself is conducted by the clerk of the circuit court. If the sale brings in more than the total owed under the final judgment, the surplus is deposited into the court registry and held by the clerk of court.
Here’s how to claim surplus funds:
Confirm a surplus exists After the foreclosure sale, check the court docket or contact the clerk of court to see if there is a surplus. The surplus is the amount left after paying the debt, interest, fees, and costs listed in the final judgment.
Understand the order of distribution The clerk of court first pays amounts required by the final judgment. Next, any subordinate lienholder (such as a second mortgage or judgment creditor) who filed a timely claim is paid. Finally, any remaining surplus goes to the owner of record as of the date the lis pendens was filed (usually the homeowner at the start of the foreclosure case).
File a claim with the clerk of court You do not need a lawyer or a third party to file a claim. The owner of record may submit a written claim directly to the clerk of court in the county where the foreclosure took place. The claim should include your name, contact information, proof of identity, and documentation showing you were the owner of record when the lis pendens was filed.
Wait for the court’s review The court may require a hearing to resolve competing claims (for example, if a subordinate lienholder also files a claim). If there are no disputes, the clerk of court will distribute the surplus according to the statutory order.
Be aware of the one year rule If the surplus is not claimed within one year after the sale, the clerk of court will transfer the funds to the Florida Department of Financial Services as unclaimed property. The money is not lost, but from that point only the owner of record (or the beneficiary of a deceased owner) may claim it, and the claim must be made to the Department, not the clerk.
If the surplus has already been sent to the state If more than one year has passed and the surplus is now with the Florida Department of Financial Services, only the owner of record or the beneficiary of a deceased owner may file a claim with the Department. Cruz Law Firm can assist with this process if needed.
Note: Tax-deed surplus is a separate process not covered on this page.
Example
This is a hypothetical example for illustration only.
Suppose a homeowner’s property is foreclosed in Palm Beach County. The final judgment totals $220,000 (including the mortgage, interest, and court costs). At the judicial foreclosure sale, the property sells for $250,000. The $30,000 surplus is deposited by the clerk of the circuit court into the court registry.
- The clerk first pays the $220,000 required by the final judgment.
- A subordinate lienholder (a credit card company with a recorded judgment) files a timely claim for $5,000 and is paid next.
- The remaining $25,000 is available to the homeowner who was the owner of record when the lis pendens was filed.
- The homeowner files a claim with the clerk of court, provides proof of identity and ownership, and—if there are no disputes—receives the surplus.
Tip: If you are unsure whether a surplus exists, contact the clerk of court in the county where your property was sold. You do not need to pay anyone to check for you.
Common pitfalls
- Missing the one year window with the clerk of court
- If you do not claim the surplus within one year after the sale, the funds are sent to the Florida Department of Financial Services as unclaimed property. You can still claim them, but only through the Department.
- Confusing foreclosure surplus with tax-deed surplus
- The process and deadlines for tax-deed sales are different and not covered here.
- Assuming the lender or their attorney holds the surplus
- Only the clerk of court holds the surplus funds after a judicial foreclosure sale.
- Not understanding the order of distribution
- Subordinate lienholders who file timely claims are paid before the owner of record receives any remaining surplus.
- Assigning your rights without understanding the cost
- If you assign your right to the surplus to another party, such as a surplus recovery company, Florida law caps their total compensation at 12 percent of the surplus. Consider whether you want to assign your rights or file directly.
Summary
- Florida is a judicial foreclosure state; the clerk of the circuit court conducts the sale and holds any surplus in the court registry.
- Surplus funds are distributed first to amounts in the final judgment, then to subordinate lienholders who file timely claims, and finally to the owner of record as of the lis pendens date.
- After one year, unclaimed surplus is sent to the Florida Department of Financial Services as unclaimed property, but it is not lost.
- The owner of record or the beneficiary of a deceased owner may claim surplus funds directly from the clerk of court or, after one year, from the Department.
- Next steps: Contact the clerk of court in the county where your property was sold to check for a surplus, and gather documents showing your ownership at the time of the lis pendens. This page is general information and does not create an attorney-client relationship.
Important information
Attorney advertising. Responsible attorney: Christian Cruz, Esq. Office: CRUZ LAW FIRM, 160 W Camino Real, 589, Boca Raton, FL, 33432.
Florida law does not require you to hire a lawyer or anyone else to claim foreclosure surplus funds. A former owner may file a claim with the clerk of court directly, and does not have to assign their rights to anyone to do so.
This page is general information about Florida law, not legal advice. Reading it does not create an attorney-client relationship, and no such relationship is formed until we have a signed written agreement.
Fee arrangements depend on the posture of the matter and are set out in a written agreement before any work begins. We are glad to explain how fees would work in your situation when we speak.
FAQ
Who holds foreclosure surplus funds in Florida?
After a judicial foreclosure sale in Florida, any surplus funds are held by the clerk of the circuit court in the court registry—not by the lender or their attorney.
How long do I have to claim foreclosure surplus funds from the clerk of court?
You have one year after the foreclosure sale to claim surplus funds from the clerk of court. After that, the funds are sent to the Florida Department of Financial Services as unclaimed property, but you may still claim them from the Department.
Who is entitled to receive foreclosure surplus funds?
Surplus funds are distributed first to pay amounts in the final judgment, then to subordinate lienholders who file timely claims, and finally to the owner of record as of the date the lis pendens was filed.
Do I need a lawyer to claim foreclosure surplus funds in Florida?
No, Florida law allows the owner of record to claim surplus funds directly from the clerk of court without a lawyer or third party. However, some people choose to seek legal assistance for help with the process.
What happens if I do not claim the surplus within one year?
If the surplus is not claimed within one year, the clerk of court sends the funds to the Florida Department of Financial Services as unclaimed property. The money is not lost, but from then on, only the owner of record or the beneficiary of a deceased owner may claim it from the Department.