Surplus funds, Unpaid taxes in foreclosure sale

[Cheryl Olson]

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.

[Ivan Vargas]

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.