California State Tax Deed Surplus Overages
You could be entitled to a Tax Deed Surplus, but you don’t realize it or don’t know how to get your hands on the money. “What is a Tax Deed Surplus?” should be the first inquiry.
This implies that you or a family member has failed to pay property taxes, and the county in which you live has opted to pursue a Tax Deed Foreclosure in order to recover the unpaid taxes. The property has then been auctioned at a Tax Deed Foreclosure Auction.
There is a surplus of funds if the property was sold for more than the amount owing in taxes. Some or all of this money may be yours, but there are procedures you must take first to establish if you will receive it and its value.
Many times, the property owner has died and the heirs have failed to ensure that the taxes are paid. Those same heirs, however, are now entitled to the Surplus from the property’s foreclosure sale. There may, however, be lienholders who are owed money.
According to Florida Statute 197.582(2)(a):
“If the property is purchased for an amount in excess of the statutory bid of the certificate holder, the surplus must be paid over and disbursed by the clerk”
To subordinate lien holders and parties who have filed an attorney’s fee claim, and then to the property’s owner at the time of the sale. According to Florida Statute 197.582(3), these subordinate lien holders have “120 days from the date of the notification to submit a written claim with the clerk for the surplus profits to collect any of the excess funds.” Furthermore, claims that are not submitted on or before the end of business on the 120th day from the date of the sent notice, as required by paragraph (2), are prohibited by Florida Statute 197.582(5).
Surplus funds, if any, belong to the original property owner or his/her heirs once all subordinate lien holders have either lodged a claim or have been barred due to time limitations. Who are their heirs, though?
When a person dies, his or her relatives are referred to as the heirs, and their assets, whether tangible (physical property) or intangible (monetary property), are distributed per stirpes to the heirs. Per stirpes is a Latin phrase that means “by stock” or “by roots.”
When a man or woman dies intestate (without a Will), their children may inherit any property they have left. If the children are likewise deceased but have children (the original person’s grandchildren), the property passes to them. If no children or grandchildren are born, the property is passed down to siblings or their children. If none of those are present, it is given to the dead person’s parents.
When there is a Tax Deed Surplus, it is usually a consequence of someone dying and not paying their property taxes. When a family is at a loss as to what to do, the taxes are not paid, and the home is sold in a Tax Deed Sale. The family may not be aware of any excess funds from the sale until they are contacted by the Clerk’s office or a firm claiming to be heirs to the dead and claiming they may be entitled to any Surplus Funds.
Do not hesitate to get in touch if you feel you or a family member may be entitled to Surplus Funds, if you have received a letter from the Clerk of Courts claiming you may be entitled to Surplus Funds, or if you have been approached by a firm claiming you may be entitled to Surplus Funds.
Comments are closed