You Don’t Need to “Assign” Your Rights: Claiming Funds as the Owner of Record
The Florida statute governing foreclosure surplus provides direct rights to the former homeowner, who is the owner of record. Many people receive letters claiming they must sign an “Assignment of Rights” to recover their money. Florida law says otherwise.
Recovery companies often present assignment agreements as the only path to surplus funds. This creates unnecessary confusion and may cost former homeowners thousands in fees. The truth is simpler: if you were the owner of record when the foreclosure case began, Florida law already recognizes your right to claim surplus funds directly.
Key Takeaways for Owner of Record Foreclosure Surplus in Florida
- Florida Statute 45.032 creates a rebuttable presumption that the owner of record holds the primary right to surplus funds.
- Signing an assignment transfers your claim rights to a third party, often in exchange for a percentage of the funds.
- Former homeowners may file surplus claims directly with the court without assigning rights to anyone.
Why People Believe Assignment Is Required
Recovery companies have a financial interest in acquiring assignment rights. Their marketing often implies that professional help requires signing over your claim.
How Recovery Company Marketing Creates Confusion
Letters from recovery companies use official-sounding language. Phrases like “Assignment of Proceeds” or “Transfer of Rights” appear alongside claims that this paperwork is “standard” or “required.”
Some companies suggest the court process is too complicated for individuals to handle alone. Others imply that without their services, the funds may be lost entirely. These tactics create urgency that benefits the company, not the former homeowner.
The Reality of Direct Claims
Former property owners may file claims directly with the Clerk of Court. The process involves paperwork and potentially a hearing, but assignment is not a prerequisite.
The court recognizes the owner of record’s right to surplus funds without requiring third-party involvement. An attorney may assist with the process while allowing you to retain full control of your claim.
Who the Owner of Record Is Under Florida Law
Florida law defines the owner of record based on a specific point in the foreclosure timeline. This determination controls who holds the primary right to surplus funds.
The Lis Pendens Date Explained
A lis pendens is a legal notice filed in public records when a foreclosure lawsuit begins. The document alerts potential buyers that the property is subject to pending litigation.
The person or entity listed as property owner when the lis pendens was recorded becomes the “owner of record” for surplus fund purposes. This designation persists even after the foreclosure sale transfers ownership to someone else.
Why This Date Matters for Surplus Claims
The owner of record at lis pendens filing holds a presumed right to surplus funds under Florida law. Later property transfers do not automatically shift this right.
This means that even if years have passed since your foreclosure, your status as the former owner of record may still allow you to claim surplus funds directly.
The Rebuttable Presumption Explained in Plain Language
Florida Statute 45.032 establishes what courts call a “rebuttable presumption” favoring the owner of record. This legal concept works in your favor.
What “Rebuttable Presumption” Means
A rebuttable presumption means the court assumes something is true unless someone proves otherwise. For surplus funds, the presumption is that the owner of record holds the right to claim the money.
Other parties, like junior lienholders, may challenge this presumption by filing their own claims. However, the burden falls on them to demonstrate their superior right, not on you to demonstrate yours.
How This Protects Former Homeowners
The statute places the owner of record at the front of the line after junior lienholders file timely claims or their deadlines pass without claims. You may then claim any remaining surplus directly.
This presumption exists precisely because lawmakers recognized that former homeowners, not third-party recovery companies, hold the fundamental right to excess foreclosure proceeds.
Risks of Signing Assignment Agreements
Assignment agreements transfer legal rights from one party to another. In the surplus funds context, signing an assignment may have significant consequences.
What Happens When You Sign
An assignment agreement typically does the following:
- Transfers your right to claim surplus funds to the recovery company
- Authorizes the company to file claims and receive payments in your place
- Allows the company to deduct fees before you receive any funds
- May limit your ability to terminate the agreement or seek other help
Once signed, reversing an assignment may prove difficult. The company now holds legal rights that previously belonged to you.
The Financial Impact of Assignment Fees
Recovery companies charge fees. Florida Statute 45.033 caps assignee compensation at 12% of the recovered amount. In addition, assignment companies will charge their attorney’s fees.
However, some companies attempt to exceed this cap through creative fee structures. A $30,000 surplus at even the legal maximum costs $3,600 in fees that you might avoid through direct filing or attorney representation.
Claiming Surplus Funds Without Giving Up Rights
Former homeowners have options that do not require transferring claim rights to a third party. The process involves court filings, but assignment is not mandatory.
The Direct Claim Process
Filing a direct claim involves these general steps:
- Obtaining the foreclosure case number and surplus fund documentation
- Filing a claim with the Clerk of Court in the appropriate county
- Providing identification and proof of ownership status
- Attending a court hearing if required
Each case involves specific requirements, and procedures may vary by county. The Broward County Clerk of Courts handles foreclosure matters for properties in Plantation and the surrounding areas.
Working With an Attorney While Keeping Control
An attorney may represent you in the surplus claim process without taking an assignment of your rights. This arrangement differs fundamentally from recovery company contracts.
Attorney Carlos M. Amor represents clients directly rather than acquiring their claim rights. This approach keeps control of the surplus funds where it belongs: with the former homeowner.
When Legal Guidance May Help Preserve Control
Some surplus fund situations involve complications that benefit from professional review. Knowing when to seek help may protect both your rights and your recovery.
Situations That May Require Professional Analysis
Consider consulting with an attorney if you face these circumstances:
- Junior lienholders have filed competing claims against the surplus
- You already signed an assignment and have questions about its validity
- The surplus amount is substantial and worth protecting carefully
- You are unsure whether you qualify as the owner of record
These situations may involve legal questions that affect your ultimate recovery.
FAQ for Foreclosure Surplus Claims in Florida
Your Money, Your Control
As the owner of record, you have direct rights that no one may take without your consent. Recovery companies need your signature; you do not need theirs.
Attorney Carlos M. Amor offers free consultations by phone, video meeting, or in person. A conversation about your specific situation may confirm whether you may proceed directly or whether complications exist that require attention.
Contact The Law Office of Carlos M. Amor, P.A. to review your surplus fund options with someone focused on protecting your control, not acquiring your rights.
