Understanding Florida’s 60-Day Rule: How to Protect Your Right to Foreclosure Surplus Funds

When a property in Florida is sold at a foreclosure auction, it doesn’t always result in a total financial loss. In many cases, after the foreclosing party, court costs, and legal fees have been satisfied, there are remaining funds — referred to as foreclosure surplus funds or excess proceeds.

These funds may be owed to the listed defendants, former homeowners, or their heirs — but only after all other recorded debts are satisfied, including second mortgages, judgment liens, and HOA or COA assessments. Florida law follows the “first in time, first in line” principle, meaning each lienholder is paid in the order their recorded interest. Only after those obligations are cleared or negotiated does the remaining balance belong to the property owner or their estate.

Under Florida Statute §45.033, if a homeowner or creditor chooses to work with a professional foreclosure surplus recovery company — or assigns their rights to one — that assignment must be filed with the court within 60 days of the Certificate of Disbursements being issued.

This statute was established to bring structure and accountability to the surplus-fund process. However, the short 60-day timeframe often makes it challenging for property owners or creditors to complete all the necessary steps on their own.

Creditors must act promptly — they have only 60 days to file a valid claim or assignment, and failure to do so permanently bars their claim under Florida law.

While homeowners and heirs may have a slightly longer window to claim their funds, it’s strongly recommended to file within 60 days to avoid delays or complications.

Taking timely action preserves your rights and ensures your surplus funds are claimed

If you’ve recently lost property to foreclosure in Florida — as a loan servicer, lender, homeowner, or heir — you may be entitled to surplus funds from the sale. Acting quickly is essential, as the process can be complex and time-sensitive.

At Century Investment Group Ops, Inc., our experienced team of South Florida foreclosure surplus analysts can help you maximize your recovery and ensure you receive the funds you rightfully deserve.

📞 Call 888-592-7044 or contact us online today to schedule your no-cost consultation and learn how we can help protect your rights.