Is This a Scam? How to Verify a Surplus Funds Company

You opened the mailbox and found a letter saying you may be owed money from a foreclosure or tax sale. Maybe someone called or texted with the same news. Your first thought was probably: this sounds too good to be true.

That instinct is smart. A surplus funds scam can look just like a real offer, because scammers use “unclaimed money” to trick people. But surplus funds are also very real, and every year thousands of former homeowners and heirs never collect money that legally belongs to them.

This guide shows you how to tell the difference, and how to check for yourself, for free, before you trust anyone.

First, what are surplus funds?

When a home is sold at a foreclosure auction or a tax deed sale, the money from the sale pays off what was owed, such as the mortgage or the unpaid property taxes. If the home sells for more than what was owed, the extra money is called surplus funds (also called excess proceeds or overages).

That extra money doesn't go to the bank or the county. It's held, usually by the clerk of court or the county, for the former owner or, if the owner has passed away, their heirs.

Here's a simple example:

	Amount
Home sells at auction for	$250,000
Amount owed	$180,000
Surplus owed to the former owner	$70,000

This is an illustrative example. Actual amounts vary by case.

The catch: most people are never told this money exists. Rules and deadlines vary by state and county, and unclaimed funds may eventually be turned over to the state, which can make them much harder to get back.

6 red flags of a surplus funds scam

If you see any of these, stop and verify before going further.

1. They ask you to pay upfront. A "processing fee," "filing fee," or "release fee" before you get anything is the biggest warning sign. Legitimate recovery companies are paid only after your funds are recovered.

2. They ask for your bank account, credit card, or Social Security number right away. Nobody needs your bank login or card number to find out whether you're owed money.

3. They pressure you to sign today. Real deadlines exist, but "sign in the next hour or lose everything" is a pressure tactic.

4. They won't tell you where the money is held. A real company can tell you the county, the case, and who is holding the funds.

5. They say they're from the government. Private recovery companies are not the county, the court, or the IRS. Anyone who pretends to be is lying.

6. There's no real business behind them. No physical address, no website, no reviews, and a phone number that goes nowhere.

Signs you're dealing with a legitimate company

• No upfront cost. Their fee is a percentage of what's recovered, paid only after you receive your money.

• Everything in writing. You get a clear agreement showing the fee before you sign anything.

• They tell you where the funds are. They can name the county, the case, and the office holding the money, so you can confirm it yourself.

• A real business you can look up. A physical address, a working phone number, a website, and a record with the Better Business Bureau or state business registry.

• They tell you that you can file on your own. An honest company won't hide that you have the right to claim the funds yourself. They'll explain what they do that makes it easier.

• Licensed attorneys when required. Some claims need a court filing. A legitimate company works with a licensed attorney when the case calls for it.

How to check the funds yourself, for free

You never have to take anyone's word for it. Here's how to confirm:

1. Find the county where the property was sold. That's where the funds are usually held.

2. Contact the clerk of court or the county's tax collector or treasurer office. Many post their surplus funds lists online. Search "[county name] surplus funds list."

3. Ask if there are funds in your name (or your late family member's name) and what's needed to claim them.

4. Look up the company that contacted you. Search its name on bbb.org and your state's business registry. Read the reviews.

5. Never give out bank or card numbers to confirm your identity. A legitimate process doesn't require it.

If the county confirms the funds and the company checks out, you can decide whether to file on your own or let a professional handle it.

Taking these steps is the surest way to avoid a surplus funds scam.

How Royal Recovery Solutions works

We built our process around the questions you should be asking:

• We never charge upfront. You pay nothing unless your funds are recovered.

• We never ask for your bank or card numbers.

• Our fee is agreed in writing before any work begins.

• We're BBB Accredited with an A+ rating. Check our BBB profile.

• We work with licensed attorneys when a case requires a court filing.

• You can always verify the funds with the county yourself. We'll tell you exactly where to look.

We're based in Miramar, Florida, and help former homeowners and heirs nationwide.

Think you may be owed money? Check your funds for free or call 1-866-454-7621. No cost, no obligation.

This article is for general information only and is not legal, tax, or investment advice. Royal Recovery Solutions LLC is a private surplus funds recovery company, not a law firm or government agency. You may file a claim for surplus funds yourself at no cost through the office holding the funds.