Filing a surplus funds claim should be straightforward, but many people make avoidable mistakes that delay their claims for months — or result in outright denial. After seeing countless claims go wrong, we've identified the seven most common errors and how to avoid them.

Avoiding claim mistakes

Avoiding common mistakes can save months of delays

Mistake #1: Missing the Deadline

The most devastating mistake is simply waiting too long to file. Every state has a deadline for claiming surplus funds, and once it passes, your money may be gone forever — transferred to the state's unclaimed property fund or forfeited entirely.

Some states give you as little as 60-90 days. Others allow several years. But regardless of the timeframe, procrastination is the enemy.

Solution: Research your state's deadline immediately and start the claim process as soon as possible. Even if you think you have years, unexpected complications can arise.

Mistake #2: Filing with the Wrong Office

Surplus funds can be held by different entities depending on the type of foreclosure and your location. Filing with the wrong office means your claim sits in limbo while the clock keeps ticking.

Common confusion points:

  • County clerk vs. county treasurer
  • Court registry vs. tax collector
  • State unclaimed property vs. county funds
Solution: Call the county before filing to confirm exactly where surplus funds are held and which office handles claims. Get the correct address, forms, and contact person.

Mistake #3: Incomplete Documentation

Submitting a claim without all required documents is one of the fastest ways to get rejected. Common missing items include:

  • Proof of identity (expired ID, wrong name)
  • Proof of ownership (deed, title documents)
  • Death certificates and probate documents (for heir claims)
  • Notarized signatures where required
Solution: Request a complete list of required documents from the holding office before filing. Double-check that every item is included and properly formatted.

Mistake #4: Name Discrepancies

If the name on your ID doesn't exactly match the name on the property records, your claim will likely be flagged or denied. This commonly happens with:

  • Marriage or divorce name changes
  • Legal name changes
  • Nicknames vs. legal names (Bob vs. Robert)
  • Misspellings in original records
Solution: Include documentation of any name changes (marriage certificate, divorce decree, court order). If there are misspellings, include an affidavit explaining the discrepancy.
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Mistake #5: Ignoring Junior Lienholders

If there were other liens on your property (second mortgage, HELOC, judgment liens), those creditors may also have claims to the surplus funds. Filing without addressing this can complicate your claim.

The priority of claims typically follows the priority of liens — meaning junior lienholders get paid before you receive any remaining surplus.

Solution: Research what liens existed on the property at the time of foreclosure. Understand that surplus may be reduced by amounts owed to junior lienholders. Factor this into your expectations.

Mistake #6: Not Following Up

Many people file their claim and then wait passively, assuming they'll hear back. But claims can get lost, misfiled, or stuck in bureaucratic limbo. Without follow-up, you may never know there's a problem until it's too late.

Solution: After filing, call to confirm receipt within a week. Ask for a case number or reference number. Follow up monthly until resolved. Keep records of all communications.

Mistake #7: Falling for Scams

Unfortunately, surplus funds attract scammers. Common scams include:

  • Companies demanding large upfront fees
  • Letters claiming you must pay to "release" your funds
  • Fake government notices requesting personal information
  • Pressure tactics to sign contracts immediately
Solution: Never pay upfront fees to claim surplus funds. Legitimate recovery services work on contingency (paid from recovered funds). Verify any company's credentials before signing anything. When in doubt, contact the county directly.

How to File a Clean Claim

To maximize your chances of a smooth, successful claim:

  1. Research first: Know your deadline, the correct office, and required documents before starting
  2. Gather everything: Collect all documents before filing — don't submit piecemeal
  3. Review carefully: Check for name consistency, complete signatures, and proper notarization
  4. Keep copies: Make copies of everything you submit
  5. Send securely: Use certified mail with return receipt or hand-deliver with a receipt
  6. Follow up: Confirm receipt and check status regularly
  7. Be patient but persistent: Claims can take months to process, but don't let them fall through the cracks

Want to Avoid These Mistakes?

We handle surplus fund claims professionally, ensuring nothing falls through the cracks. Free consultation to review your case — no upfront fees.

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The Bottom Line

Most surplus fund claim mistakes are avoidable with proper preparation and attention to detail. The stakes are high — these errors can cost you thousands of dollars or cause months of delays.

If you're unsure about any aspect of the claim process, it's worth getting professional guidance. The cost of a mistake often far exceeds the cost of doing it right the first time.