Q: We purchased a foreclosure property with a junior lien unfortunately (court records did not reveal any liens).
We purchased a foreclosure property with a junior lien unfortunately (court records did not reveal any liens). The bank (who is in possession of the senior lien) is now foreclosing the property through a private auction. Do we have the ability to claim any surplus from the bank sale to try and recoup some of the money spent on the junior lien?
A: After the property is sold, there will be a surplus or a deficiency. If a surplus, then the order in which payment is made is to the plaintiff, then to any lienholder, then to the owner. That's it. There's no.provision to be repaid, etc.,.etc. I think its section 45.032, Florida Statutes. Available online.
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A: Yes, you can claim the surplus funds as the new owner of the property. Your claim to the surplus will only be cutoff by lien holders who recorded an interest between the date of recording the senior lien and the junior lien. Attorneys typically charge a percentage of the amount recovered to file a claim for surplus funds. Schedule a free consultation to plan your surplus recovery.
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