Time and time again, we have presented our audience with the benefits of obtaining a foreclosure defense attorney. Among many of the benefits we include, providing the homeowners with options that avoid foreclosure and ensuring court decisions are made fairly by presenting the defense to the court. Another advantage that is rarely discussed is the possibility for homeowners to receive money after the foreclosure sale.
How does the homeowner receive payment after the foreclosure sale?
This is something that cannot be guaranteed, since it all depends on the judgment amount owed to the bank for the property and the price it is sold for during the foreclosure auction. However, the statutory procedure in Florida dictates that the owner of record is entitled to the surplus of funds for the sale of the foreclosed property. The surplus is the amount remaining when the judgement amount is subtracted from the sale price.
The money is there, and rightfully belongs to the homeowner. It is the homeowner’s responsibility to track the certificate of disbursement made by the clerk of courts after the foreclosure sale and keep a close eye on the lienholder, which has 60 days following the date of the certificate to file a motion for the surplus or excess proceeds.
At Graham Legal, we believe that the homeowner is entitled to the surplus and should receive it to assist them in getting back on their feet. The bank should only obtain enough to satisfy their judgment.
Will the homeowner still receive the surplus without a foreclosure defense attorney?
By law, the owner of the home at the time of sale is initially entitled to the surplus or excess proceeds from the sale, but many things can happen within the following 60 days. For instance, the lienholder may submit a motion for the surplus, which will need to be challenged. In many other instances, if the homeowner did not submit an answer to the original complaint filed with the court, they will not be located easily by the court and will essentially forfeit their right to collect the surplus from the sale.
From beginning to end, the team at Graham Legal is focused on doing what is best for the homeowner. Even negative situations, such as foreclosure, can be managed in a way that is fair. Foreclosure is something that many people don’t want discuss, particularly if they’re currently experiencing it, but if you do speak about it to someone, be sure that it is an expert that can provide advice and has your interest at heart.