The SurplusFactor Fair Value Standard

SurplusFactor evaluates the verified amount, priority, available surplus, recovery probability, expected timing, documentation, legal requirements and anticipated recovery costs. There is no universal purchase percentage, and face value alone does not determine what a claim is worth.

Our pricing is measured against verified expected recovery, not face value, original judgment, original mortgage balance, or total surplus. A $150,000 original judgment may represent a $120,000 outstanding balance, of which $100,000 is reasonably supported by available surplus and priority, and a probability-adjusted recovery below that.

The stronger and more certain the claim, the closer our offer should be to expected recovery. A highly documented, well-covered, high-priority, short-duration claim with very high recovery confidence may justify a purchase price close to its expected recovery value. Moderate-risk claims price lower. Complex or high-risk claims require individual underwriting.

Every offer accounts for collection probability, expected legal and administrative cost, expected collection period, cost of capital, priority risk, documentation risk, procedural risk, assignment risk, litigation risk, timing risk and required return. The result is a maximum economic purchase price presented transparently to the creditor.

There is no automatic valuation. No offer is made before verification, and no purchase percentage is promised before underwriting. Submission of a claim does not constitute an offer to purchase.