When your home is sold at foreclosure for more than what you owed, you’re entitled to the remaining proceeds—called surplus funds. These funds can amount to thousands of dollars, yet many former homeowners never claim what’s rightfully theirs, while others unknowingly surrender a significant portion to unregulated “surplus recovery” companies.

At The Walls Law Group, we help North Carolina residents legally claim their surplus funds without unnecessary fees or complications. Here’s what you need to know to protect your financial interests.

 

Understanding Surplus Funds

Surplus funds are what remains from a foreclosure sale after your mortgage and any property-related debts are satisfied. This money doesn’t belong to the bank or government—it’s legally yours as the former homeowner, or your estate’s if you’ve passed away.

In North Carolina, recovering these funds requires filing a formal court petition. While the process may seem complex, it doesn’t require hiring expensive third-party companies that take large percentages of your money.

 

Warning: “Surplus Recovery Companies” Often Overcharge

Many former homeowners receive unsolicited communications from companies claiming they’ve “discovered unclaimed money” belonging to you. These companies typically:

     

      • Present themselves as sophisticated asset recovery specialists

      • Advertise operations across all 50 states

      • Require you to sign agreements giving them 30% or more of your recovery

    What they deliberately omit is that many aren’t legally authorized to operate in North Carolina.

    North Carolina law provides strong consumer protections against unqualified property finders:

       

        • Under General Statute 116B-78, anyone charging fees to locate unclaimed property must register annually with the NC Department of State Treasurer.

        • Since January 1, 2022, they must also hold private investigator licenses through the NC Private Protective Services Board (per G.S. 116B-78.1).

      Important: Currently, only 7 finders are legally registered to perform this service in North Carolina.

      If the person or company contacting you isn’t on this official list, they lack legal authorization to assist you—and you have no obligation to work with them.

       

      The Dangers of Unlicensed Finders

      Working with unregistered finders puts your money at serious risk:

         

          • You could lose a substantial percentage to unnecessary fees

          • They might mishandle your case or submit incorrect documentation

          • You may inadvertently sign away your rights to direct claims

        At The Walls Law Group, we help clients properly petition the courts for surplus funds—without surrendering their money to third-party finders.

        Our approach offers clear advantages:

           

            • We file your claim directly through proper legal channels

            • You retain more of what you’re entitled to

            • You receive expert guidance from a licensed North Carolina law firm

            • We operate with transparent fees and straightforward agreements, with no  upfront fees or costs

          Unlike recovery companies, we don’t charge percentage-based “finder’s fees.” Instead, we provide professional legal representation ensuring you recover your surplus funds properly and efficiently.

           

          Been Contacted About Surplus Funds?

          Before signing any agreement, consult with a licensed attorney. What appears to be helpful assistance could be costing you significantly more than necessary.

          We’re available to answer your questions, explain the legal process, and help you recover what’s rightfully yours.

          Call 919-647-9599 to schedule a consultation today!

          Don’t let unlicensed operators take your surplus funds. Work with a legal team you can trust to handle your case correctly.