Who sends letters about surplus funds?
Two kinds of senders. The first is the office that holds the money. In Ohio, when a sheriff's sale leaves $500 or more, the Clerk of Courts must send the former owner a certified-mail notice (R.C. 2329.44). In Georgia, the officer who ran a tax sale must mail notice of excess funds to the record owner within 30 days (O.C.G.A. § 48-4-5). In Florida, the clerk mails notice of tax deed surplus to the owner and lienholders (Fla. Stat. § 197.582).
The second is a private company. Recovery firms read the same public sale records, work out which sales left money behind, and write to the former owners. Some are honest. Some charge far more than the work is worth, and a few are outright scams. The letter alone won't tell you which.
There's a reason the company letter often arrives first. Official notices go to the address on file, which is usually the house that was sold. If you moved, the county's letter may never have reached you. More on that in our guide to notices that went to your old house.
How can I tell an official notice from a company letter?
| What to look at | Official notice from the county or court | Letter from a company |
|---|---|---|
| Who it's from | The clerk of courts, county treasurer, tax commissioner or clerk of the circuit court, named by office | A business name, sometimes one that sounds official |
| What it asks you to do | File a claim form or a motion with that office, with proof of who you are | Sign an agreement with the company, sometimes an assignment or a power of attorney |
| What it costs | Nothing to ask whether money exists; some offices charge routine filing or notice costs | A percentage of what is recovered, sometimes with costs on top |
| Case details | Names the case or parcel and the office holding the money | May quote an amount but leave out the case number or the office |
| How to confirm it | Call the office using a number from its official website | Call that same office yourself and ask what it is holding |
What should I check before I sign anything?
- Ask for the case number and the office holding the money. Every surplus sits in a specific court case or county account. A legitimate sender will tell you, and then you can check it.
- Call that office yourself. Ask whether surplus or excess funds are being held from your sale, roughly how much, and whether anyone else has filed a claim. The call is free.
- Read what the document actually is. A fee agreement keeps the claim in your name. An assignment transfers your right to the money to the company. A power of attorney can let someone else act for you. Know which one you're holding.
- Get the fee and your net amount in writing. Both the percentage and the dollar amount you would receive should be on paper before you sign.
- Check any deadline they quote. Real deadlines exist, but they run in months or years, not hours. Our deadline guide lists them by state.
- Never pay upfront. No one needs money from you to find out whether money exists.
What do Ohio, Georgia and Florida rules say about these offers?
Florida is the most specific. If a company wants an assignment of your foreclosure surplus, the assignment must say that the owner does not need an attorney or other representative to recover surplus funds in a foreclosure, must disclose the sale price, the surplus amount and everything paid for the rights, and the company's total compensation is capped at 12% of the surplus (Fla. Stat. § 45.033). A Florida assignment missing that statement is a reason to stop.
Georgia county tax offices pay excess funds to the owner, and some, such as Gwinnett, say they do not recognize representation by asset recovery firms or power-of-attorney holders; only the owner or a licensed attorney can file. Once money has gone to the state, anyone paid to recover it must register with the Department of Revenue, use the state's own agreement forms and charge no more than 30% (Georgia DOR). According to Georgia's unclaimed property law (O.C.G.A. § 44-12-239), a solicitation about money the state holds must also tell you, in capital letters, that the state is holding it, that you can claim it directly at no cost, and how to reach the Department of Revenue.
Ohio's finder law covers money held by the state's Division of Unclaimed Funds: finders must register with the Ohio Department of Commerce, fees are capped at 10%, and agreements signed within two years of the funds being reported are void (R.C. 169.13). Surplus still with the county clerk or treasurer is not covered by that cap, which is why the fee in writing matters.
These rules are public law. You can read each one at the links in the sources below, or ask the office holding your money.
Is it a scam if they already know how much I'm owed?
No, and it isn't proof they're honest either. Sale prices, judgments and surplus lists are public records, and in many counties the excess funds list is posted online with names and amounts. Anyone can look it up, including you. What separates a fair offer from a bad one is what they ask you to sign and what they ask you to pay.
Two things should end the conversation right away: a request for money before anything is recovered, and pressure to sign today. The FTC's warning about unexpected calls about unclaimed funds lists the same signs. If someone phoned you instead of writing, our guide for when someone calls about surplus funds covers the questions to ask.
What if I want help with the claim?
Plenty of claims are simple enough to file yourself, and our guide on claiming surplus funds yourself shows how. Help is worth it when someone else is claiming the same money, when the owner has died, or when the case needs a court hearing.
If you talk to us, use the same checklist. We give you the county, the case and the office holding the money before you sign anything, so you can call and confirm it. There are no upfront costs: attorney fees, filing fees and court costs are covered, and you pay nothing unless money is recovered. We never ask for an assignment of your rights or a deed. Request a free review if you'd like us to check the record.
Keep reading
- State guides: Ohio surplus funds, Georgia excess funds, Florida surplus funds
- Is Surplus Funds Recovery Legit? How to Tell the Real Thing From a Scam
- How Long Do I Have to Claim Surplus Funds After Foreclosure?
- Can I Claim Surplus Funds Myself, Without a Lawyer or Recovery Company?
- Was My House Sold for More Than I Owed?
Sources
- Ohio R.C. 2329.44, Notice to the former owner of excess sale proceeds
- Ohio R.C. 169.13, Finder agreements for unclaimed funds
- O.C.G.A. § 48-4-5, Payment of excess (tax sale excess funds)
- Georgia Department of Revenue, Claimant Designated Representative FAQs
- Gwinnett County Tax Commissioner, Tax Sale Excess Funds
- Fla. Stat. § 45.033, Sale or assignment of rights to surplus funds
- Fla. Stat. § 197.582, Disbursement of proceeds of tax deed sale
- FTC consumer alert, How to handle unexpected calls about unclaimed funds
- ReportFraud.ftc.gov