In Florida, you will get money from a foreclosure sale only if the property sells for more than the total debt owed to the lender and other lienholders. This excess money is legally referred to as surplus funds.

Surplus funds are defined as the money remaining after all disbursements required by the Final Judgment of Foreclosure are paid.

Before you receive any money, the proceeds of the sale are distributed in a specific order:

• Primary Lender: The bank that initiated the foreclosure is paid the full amount of its judgment first
• Subordinate Lienholders: Other parties with a legal interest in the property—such as second mortgage holders, Homeowners’ Associations (HOA), or judgment creditors—must be paid from the remaining funds
• The Former Owner: Whatever is left after satisfying all superior claims and statutory clerk fees belongs to the prior owner however you must be proactive to recover these funds; the court does not automatically mail you a check.
• Deficiency Judgments: Conversely, if the house sells for less than what you owe, you will not receive any money and may actually be hit with a deficiency judgment, meaning you still owe the bank the remaining balance

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Any potential buyer or title company will discover this filing immediately during a standard title search, making transparency about the pre-foreclosure status essential for a successful transaction.

Choosing to sell your home before the foreclosure auction is a proactive way to protect your credit rating and maintain control over your financial future.

If you have equity in the home, a quick sale allows you to satisfy the debt in full and potentially walk away with your remaining funds. If you owe more than the home is worth, you may need to pursue a short sale, which requires you to disclose the situation to the buyer because the sale is subject to your lender’s approval and a deficiency waiver.

If your Property doesn’t sell privately before the foreclosure date, the property will proceed to a court-ordered public auction. At this auction, the property is sold to the highest bidder, which can be an outside investor or the bank itself.

If no one outbids the lender's maximum credit bid, the bank takes ownership, and the property becomes "Real Estate Owned" (REO). Once the auction concludes and the Clerk issues a "Certificate of Sale," your absolute legal "right of redemption" to reclaim the property by paying the debt typically expires.

Following the sale, the new owner will receive a "Certificate of Title" and can request a "Writ of Possession" from the court. Once the Sheriff serves this writ, you generally have only 24 hours to vacate the premises before being forcibly removed. Finally, if the auction price is less than what you owe, the bank may pursue a "deficiency judgment" against you for the remaining balance.