If someone is contacting you about surplus funds, your first reaction might be suspicion. That is completely understandable. Unsolicited calls and letters about money you did not know existed sound a lot like a scam. But in many cases, the person reaching out is legitimate, and there really is money owed to you. The key is knowing how to tell the difference between a real opportunity and a fraud.
Why Someone Might Contact You About Surplus Funds
Surplus funds are created when a property is sold at a tax sale or foreclosure auction for more than what was owed. The extra money belongs to the former property owner. If you previously owned a property that was sold in this way, there may be leftover money in your name held by the county or the court.
There is an entire industry of professionals who research public records, identify former property owners with unclaimed surplus funds, and reach out to offer their help with the recovery process. These professionals earn a fee for their services, and the property owner receives the remaining funds.
So when you receive a call, letter, or text about surplus funds, it is very possible that someone found your name in a public record and is trying to let you know about money that belongs to you. That said, you should always verify before sharing personal information or signing anything.
How to Verify If Someone Contacting About Surplus Funds Is Legitimate
Start by asking questions. A legitimate surplus funds professional will be happy to explain who they are, what company they work for, how they found your information, and what property the surplus funds are connected to. They should be able to give you specific details, not vague generalities.
Ask for their business name and look it up online. Check for a website, reviews, and any business registration or licensing. While not all states require surplus funds companies to be licensed, legitimate businesses have a web presence and verifiable contact information.
You can also verify the underlying claim independently. Contact the county or court where the property was sold and ask whether surplus funds exist in your name. If the county confirms that funds are available, then the person who contacted you is telling the truth about the money, even if you decide not to use their services.
For more information on how surplus funds work where your property was located, visit our Georgia Surplus Funds surplus funds page.
Red Flags When Someone Contacts You About Surplus Funds
While most surplus funds professionals are honest, there are warning signs that should make you cautious.
Be wary if someone asks you to pay money upfront. Legitimate surplus funds recovery companies work on a contingency basis, meaning they get paid from the recovered funds after the money comes through. You should never have to send money before receiving anything.
Be skeptical if they refuse to provide their real name, business name, or a way to verify their identity. A real professional has nothing to hide and wants you to feel comfortable.
Watch out for extreme pressure tactics. If someone is telling you that you need to sign right now or the money will disappear, that is a red flag. Surplus funds do not disappear overnight. While there can be deadlines, a legitimate professional will give you time to make an informed decision.
Be cautious if they cannot tell you which property the funds are connected to or give you vague information about the amount. A real surplus funds professional has done their research and should know the specifics of your case.
What Is Normal When Someone Contacts You About Surplus Funds
It is completely normal to receive a letter in the mail about surplus funds. This is the most common method of first contact. The letter should identify the sender, reference a specific property, and explain that surplus funds may be available to you.
Phone calls are also common. A professional might call you to follow up on a letter or as an initial point of contact. A good caller will introduce themselves, explain why they are calling, and give you space to ask questions.
It is normal for the person to explain their fee structure. Recovery professionals typically earn a percentage of the recovered funds. They should be upfront about this. If they try to hide or downplay their fee, that is a concern.
It is also normal for them to ask you to sign an agreement before they begin work. This agreement authorizes them to act on your behalf and outlines the terms of their compensation. Read the agreement carefully before signing. Ask questions about anything you do not understand.
Your Options When Contacted About Surplus Funds
You have several options. First, you can work with the person who contacted you. If they check out as legitimate and you are comfortable with their terms, they can handle the recovery process for you. You sign an agreement, they do the work, and you receive the funds minus their fee.
Second, you can file the claim yourself. No one can prevent you from recovering your own money. The process involves contacting the county or court, submitting paperwork, and waiting for the claim to be processed. It takes more of your time but saves you the recovery fee.
Third, you can do nothing. This is not recommended if there really are funds in your name, because unclaimed surplus funds may eventually be absorbed by the government. But it is your choice.
Whichever option you choose, start by verifying the facts. Confirm that surplus funds exist, confirm who is contacting you, and then make an informed decision. Do not ignore the outreach entirely, because there may be real money at stake. And do not rush into anything without understanding what you are agreeing to.
Taking the Right Next Step About Your Surplus Funds
The fact that someone contacted you about surplus funds is not something to be afraid of. It may be one of the most valuable phone calls or letters you ever receive. Approach it with healthy skepticism, do your due diligence, and verify with the county that holds the funds. Whether you claim it yourself or work with a professional, the important thing is to act while the option is still available.