Judgment Liens Completely Expire in 7-10 years
In case you are not aware of this Florida Statute concerning Judgments in Florida, we want to make sure you know that they expire completely after a certain amount of years (depends on the original filing date)…
Note: As far as liens being able to take any tax deed surplus, even if they are still valid liens (not past the the 7-10 year time frame), they still have a deadline of 120 days to claim any surplus from the tax deed auction.
If the lien is first recorded between July 1, 1987, and June 30, 1994, then the judgment is a lien for a period of 7 years.
If the lien is first recorded on or after July 1, 1994, then the judgment is a lien for a period of 10 years.
Here is a real example for you to see:
Auction Date: 06/21/2017
Surplus: Approx $23,000
There were 3 Judgments showing on this property owed by the previous owner that were large. Do NOT dismiss the record until you look at when the original Judgments were filed because they may have reached their expiration and therefore would not be entitled to any surplus. Looking at these judgments, you might have bypassed this record.
Cavalry Investments: $5809.98 + 9% Interest per year. Originally filed 10/15/2002. Status: EXPIRED
Bank of America: $6363.06 + 10% Interest per year. Originally filed 6/23/2000. Status: EXPIRED
New Horizons: $5861.21 + 9% Interest per year. Originally filed 2/26/2002. Stauts: EXPIRED
However, one savvy Recovery Specialist took the time to look up the liens and saw they were expired. They contacted the previous property owners and made a successful (Paid) claim to the county. Congrats!
Here is a screenshot of The Property Information report showing the liens
Here is a screenshot of the document on the county’s website showing the claim was paid out to the owners. There was almost $19,000 left in surplus after the governmental liens were paid so that was split between the 2 owners (Who in this case were ex spouses)
You can also see that one of the Judgment holders (New Horizons) put in a claim but it was denied because it had expired.
PLEASE NOTE – This concerns Judgments only, NOT governmental liens or mortgages. Those do also lose their right to claim the surplus after 120 days but they do not expire as to being able to collect from the previous owner in other ways (just NOT from the tax deed surplus)