Frequently Asked Questions

Everything you need to know about selling your surplus funds claim to SurplusFactor.

What is a surplus funds claim?

When a property is sold at foreclosure or tax sale for more than the amount owed to the foreclosing party (mortgage lender or tax authority), the excess amount is called "surplus funds." The former property owner and certain other parties may have a legal right to claim those funds. A surplus funds claim is the legal right to recover that excess amount.

Who can sell a surplus funds claim to SurplusFactor?

Eligible sellers include: (1) the former property owner, (2) junior lienholders whose security interest was extinguished by the sale, (3) judgment creditors with a properly recorded monetary judgment against the former owner, and (4) legal representatives (executors, administrators, or heirs) when the former owner is deceased. Eligibility varies by jurisdiction.

How much will SurplusFactor pay for my claim?

Every offer is individually underwritten. We aim to offer at least 75% of the verified expected recovery for standard qualifying claims, and we generally will not purchase a claim requiring a discount greater than 50%. The exact percentage depends on claim verification, competing interests, documentation quality, expected collection time, and legal costs.

Is this a loan? Do I have to pay anything back?

No. This is not a loan. It is a purchase of your legal claim. You receive a cash payment now, and we assume the right to collect the surplus funds later. You owe us nothing after the transaction is complete.

How long does the process take?

Initial claim verification typically takes 3-5 business days. Once verified, we present a Fair Offer within 24-48 hours. After you accept and sign the assignment, payment is typically issued within 5-10 business days, depending on your jurisdiction's requirements.

What if there are competing claims to the surplus?

Competing claims (such as multiple lienholders or judgment creditors) are factored into our underwriting. We assess the priority of each claim under local law and adjust our offer accordingly. In some cases, competing claims may reduce the amount we can offer, or make the claim ineligible for purchase.

Do I need a lawyer?

You are not required to have a lawyer to sell your claim to SurplusFactor, though you are always free to consult one. We are not a law firm and do not provide legal advice. All assignment documentation is prepared in compliance with applicable state law, and we recommend you review it carefully before signing.

What if I change my mind after signing?

Many states require a mandatory cooling-off period (typically 3-10 days) during which you can cancel the assignment for any reason and receive a full refund of any consideration paid. We comply fully with all applicable cooling-off period requirements.

What states do you operate in?

We operate in all U.S. jurisdictions that permit the assignment of surplus funds claims. Some states have specific restrictions or requirements on such transactions, and we comply fully with all applicable state laws.

What if SurplusFactor cannot make an offer?

Not every claim qualifies for purchase. If we cannot verify your entitlement, if competing claims exceed the surplus amount, if the claim is too small, or if the legal costs would exceed the recovery, we may decline to make an offer. We will always explain our reasoning honestly.

Still have questions?

Our team is happy to help. Reach out and we will get back to you within one business day.