In this week's episode, we discuss what happens to surplus funds when someone buys a house at a foreclosure auction. Surplus funds exist when the winning bidder paid more than the amount owed to the bank.
This week's episode is a product of another listener question, and is an interesting take on a long-standing Florida Law regarding the association's ability to collect assessments against someone who bus the property at foreclosure auction. What if there are excess funds following the foreclosure sale, but the person foreclosed still owes the association money? Can the winning bidder force the association to take the surplus funds to satisfy the debt owed by the former owner?
We're unsure if there is a clear legal answer to the question, but I give the logical answer in this week's episode. Let us know what you think of my answer?