SurplusFactor
How We Underwrite Creditor Claims
We do not price the face value. We underwrite the claim.
The underwriting process
Every claim is individually underwritten. There is no automatic valuation, no predetermined discount percentage, and no offer before verification. Submission of a claim does not constitute an offer to purchase.
Claim identification
We identify or receive a potential creditor claim: junior lien, judgment, or other subordinate interest associated with foreclosure surplus or eligible property-sale proceeds.
Validity verification
We verify the underlying obligation, its relationship to the property, and whether the claim was properly entered, recorded, perfected and remains unsatisfied.
Priority analysis
We establish the claim priority position relative to competing liens, mortgages and other interests. Priority is jurisdiction- and case-specific, never assumed.
Surplus verification
We verify available surplus proceeds, identify higher-priority unresolved claims, and measure surplus coverage against the subject claim.
Assignability review
We determine whether the claim, the lien and the specific surplus rights can be assigned or transferred, and what procedure is required.
Recovery estimation
We estimate expected recovery, collection probability, timing, legal and administrative cost, and claim-specific risk.
Pricing
We price the risk against verified expected recovery, not face value. The result is a maximum economic purchase price presented transparently.
Offer and documentation
Qualified claims receive a defined cash purchase offer. Transaction documents identify precisely what is being transferred and at what price.
Core underwriting principle
We do not price the face value. We underwrite the claim.
A $100,000 face value judgment is not automatically a $100,000 recoverable creditor claim. The pricing denominator is verified expected recovery, adjusted for collection probability, timing, legal and administrative cost, capital cost and claim-specific risk.
Every transaction is individually underwritten.
There is no universal purchase percentage. No offer is made before verification. Face value alone does not determine what a claim is worth. Strong, well-documented claims with clear priority and substantial surplus coverage may command purchase prices close to their expected recovery value.