How to avoid foreclosure surplus funds scams

Warning signs

• Upfront fees. Being asked to pay before any money is recovered, or to "release" funds.
• False urgency. Claims that the money will be gone in days, when the real deadline is much later.
• Official-looking letters. Mail designed to look like it came from a court or government office.
• Vague fees. No clear statement of what you will pay and how it is calculated.
• Buying your claim. An offer to pay you a small amount now in exchange for the whole surplus, without spelling that out.
• Requests for bank details or Social Security numbers before you have a written agreement.

States regulate this business

Several states have rules for people who help homeowners recover surplus funds. Florida, for example, requires that a voluntary transfer of a surplus claim be in writing with specific disclosures, state that the owner does not need an attorney, list everything paid, and limit the transferee's total compensation to 12 percent of the surplus.¹

State attorneys general have also acted against companies that misled foreclosed homeowners. In Washington, the Attorney General obtained a court order against a company accused of deceptive surplus recovery practices.² New Jersey's Attorney General reached settlements with companies over solicitation letters to people with surplus funds.³ California and Maryland regulators also publish rules or guidance for this area.^4,5

Questions to ask any recovery company, including us

1. Who are you, and how can I verify your business?
2. How did you find my name, and what exactly does the record show?
3. Which office is holding the money, so I can call them myself?
4. What is your fee, how is it calculated, and is it in writing?
5. Am I hiring you, or selling you my claim?
6. Are you allowed to offer this service in my state?
7. Will an attorney be involved, and who pays for that?
8. Can I cancel, and how?

How we hold ourselves to this

We identify ourselves as a private company. We tell people they can claim on their own. We never ask for payment before you have a written agreement, and that agreement states our fee before any work begins. We offer recovery services only where we have confirmed we can do so lawfully, and we follow each state's limits. See how we work.