The 5th DCA recently ruled that the trial court erred in distributing surplus to a 3rd party purchaser. FL Statute 45.033, states that surplus foreclosure proceeds are generally disbursed to owner of record (except in certain limited circumstances). Surplus proceeds are that which a bidder bids over the final judgment amount owed to the bank; those excess funds are called surplus funds of the auction. They typically go to the owner of record on the date that the lis pendens was filed/recorded; after any junior liens (2nd mortgage, association assessments due, etc) are paid off, if any exist.
There has been an increase in illegal claims by 3rd party bidders themselves to foreclosure surplus when they are not entitled to such. They are essentially getting a refund of their money for making a poor business decision. The 5th DCA here put a stop to this practice holding that it is contrary to Florida law.