Central Florida Lawyer Gets 15 Years Probation For Stealing Foreclosure Surplus Funds From Clients

In Orlando, Florida, WFTV Channel 9 reports:

• An Orange County lawyer can no longer practice law and is on probation for 15 years after taking advantage of foreclosure clients. Investigators said Norman Sanders Moss took advantage of the foreclosure crisis and kept money from auctions of foreclosed homes.(1) Moss pleaded guilty to grand theft and offered one of his victims an apology.

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• Moss was ordered to work 40 hours a week in order to pay the victim, Nicholas Cabrera, back the $31,000 he stole from him. However, the former attorney will have to obtain a job that doesn't allow him to handle money or practice law.

Source: Lawyer Apologizes For Stealing Victim's Money.

(1) This money, commonly referred to as Foreclosure Surplus Funds, are proceeds generated from the sale of a home at a foreclosure, trustee's, or sheriff ’s sale over and above the balance owed on the foreclosing mortgage. Where a foreclsoure sale yields such a surplus, the foreclosed homeowner may be entitled to the money, provided there aren't any secondary liens on the foreclosed property, in which case these lien holders could have priority in their claims to the surplus. In some cases, this surplus could total thousands of dollars, although in the current real estate market, the vast majority of foreclosure sales are not attracting third party bidders, are being acquired by the foreclosing lenders, and consequently, are not yielding surpluses.