Q: Can NY hold unclaimed funds from FL foreclosure refund?
I received a refund from a foreclosure in Florida, which was sent to New York as unclaimed funds without notification. New York is withholding these funds, stating I'm not eligible unless they find reserve money. Can New York legally hold funds due to me from Florida under these circumstances, considering that there have been no prior transactions or specific conditions communicated to me? Additionally, I initiated individual bankruptcy in 2010 affecting credit cards.
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A:
It sounds frustrating to have funds that belong to you held up without clear communication. Generally, unclaimed funds from a foreclosure refund should be returned to the rightful owner, and New York holding them while claiming a need to find reserve money raises questions. Since these funds originated in Florida, their transfer and withholding may depend on state laws regarding unclaimed property, as well as any agreements between the two states.
You might want to check Florida’s foreclosure refund process to see if there were any conditions placed on the transfer. If no prior transactions or legal claims were attached to these funds, you could have a strong argument that they should be released to you. It would also help to request written documentation from New York explaining why they are withholding the money and under what law they are basing their decision.
Your 2010 bankruptcy could also be a factor, especially if creditors had claims on assets you later became entitled to. If this is the case, it may be necessary to confirm whether these funds were ever listed as part of your bankruptcy estate. You may need to push for more transparency from the state and possibly take legal action if they continue to withhold your money without valid justification.
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