Surplus Funds Are Real, But The Scams Are Too
I constantly get calls from potential clients who are suspicious of surplus funds recovery companies contacting them after a foreclosure to inform them that they have thousands of dollars owed to them known as surplus funds, excess proceeds, or overages.
Most homeowners don't know that it's even possible for them to be entitled to money after their property is foreclosed. So, it's understandable that they would assume it's a scam when a random person calls saying that they have found large amounts of money owed to the homeowner and would like to help them claim it.
Are Surplus Funds Legit or a Scam?
Surplus funds are legitimate. When a home is sold at a foreclosure auction for more than what was owed in back taxes or mortgage payments, the previous homeowner has a legal right to claim the surplus funds.
My clients often call me after a surplus funds agent mentions my name on a call to verify that I actually know them. I assure them that we do indeed work with the recovery company and I let them know that we have helped clients recover millions over the past year.
However, it's important for homeowners to be aware that there are surplus funds recovery companies out there committing very real fraud. They do this by not informing people of just how much money they are truly owed.
What is a Surplus Funds Scam?
Companies that scam people out of surplus funds are usually able to do so by having the claimant sign the rights to the money over to the company in exchange for an upfront payment of a few thousand dollars instead of having to wait months to get the funds. What the homeowner isn't aware of is that they might actually be owed 25 times as much as what they received in some cases.
For example, a Florida man by the name of Robert P. Anderson gave $2,000 to an elderly woman for rights to her funds and she later found out that she was actually owed over $54,000. She was just one of 17 clients that he did this to over a 3-year span.
Some states have laws in place to help prevent surplus funds fraud. Many counties in Georgia do not accept claims from third parties, unless the third party is an attorney’s office.
How To Avoid Surplus Funds Fraud
To avoid surplus funds scams, verify the total amount of funds owed to you and work with an experienced surplus funds attorney.
If you partner with a third party company, ensure that they hire an attorney to assist with the claim so that your funds will be securely held in escrow when released.
Surplus Funds Recovery
If you need help with surplus funds recovery after your home was sold at a foreclosure sale for more than what you owed, I can help you recover the funds you are entitled to in as little time as possible.
Call E. Albert Law at 678-664-4878 for your free consultation or email surplusfunds@ealbertlaw.com.
Attorney Esther Mesidor
E. Albert Law
