Surplus Funds Glossary
Plain-language definitions of the terms you will meet in surplus funds recovery, from overages and redemption periods to skip tracing and do-not-call rules.
Acknowledgment of service
Written confirmation that a person was formally notified of a legal action or claim. Surplus funds rules often tie claim deadlines to notice or publication dates.
Assignment
A transfer of a claimant’s right to collect surplus funds to another party. Some states restrict or ban assignments, so the structure of an agreement matters.
Attorney network
A group of licensed attorneys who handle the court filings that some surplus funds claims require, especially where only an attorney may file.
Auction sale
A public sale where a property is sold to the highest bidder, usually after foreclosure or unpaid taxes. Surplus funds can arise when the sale price exceeds what is owed.
Claim
The formal request to a court or agency to release surplus funds to the person entitled to them.
Claimant
The person or entity with a legal right to surplus funds, such as a former owner, a lienholder or an heir.
Cold calling
Outbound phone calls to people who have not asked to be contacted. In surplus funds work it is used to reach former owners about money they may be owed, and it is regulated by federal and state law.
CRM
Customer relationship management software. Recovery firms use it to track leads, calls, documents and case progress.
Dial
One outbound call attempt. Daily and weekly dial counts are a common way to measure caller productivity.
DNC (Do Not Call)
Lists of phone numbers that have asked not to receive telemarketing calls. They include the National Do Not Call Registry, state lists, and a business’s own internal list.
Escheat
The process by which unclaimed money or property passes to the state after a set period without an owner coming forward.
Excess proceeds
Another name for surplus funds: money left over after a property sale pays the debt, taxes and costs.
Finder
A person or company that locates people owed money and helps them claim it, usually for a fee. Many states license, register or limit finders.
Finder’s fee
The payment a finder charges for recovering funds. Many states cap it as a percentage of the amount recovered.
Foreclosure
A legal process where a lender takes and sells a property after the borrower defaults on a mortgage or other secured debt.
Former owner
The person who owned a property before it was sold at a tax or foreclosure sale. Often the main claimant for any surplus.
Heir
A person entitled by law or by a will to a deceased person’s property, including surplus funds owed to that person.
Judgment lien
A claim on property created by a court judgment. A judgment lienholder may have a right to part of the surplus before the owner.
Junior lienholder
A creditor whose claim ranks below the primary lender. Junior liens can reduce or absorb surplus funds.
Lead
A potential claimant with contact details and case information, such as the property, sale date and estimated surplus.
Lien
A legal claim on property as security for a debt, such as a mortgage, tax lien or judgment.
Live call transfer
A call where the caller connects an interested person directly to the claims manager while still on the line.
Mortgage foreclosure overage
Surplus left after a mortgage foreclosure sale pays the loan, interest and costs.
National Do Not Call Registry
A federal list of numbers whose owners have asked not to receive telemarketing calls. Businesses generally must scrub call lists against it.
Notice of surplus
A notice from a court, clerk or county that surplus funds are being held and may be claimed.
Power of attorney
A document that allows one person to act for another. Some states restrict how it is used in surplus funds recovery.
Probate
The court process that validates a will and distributes a deceased person’s assets, which can affect who may claim surplus funds.
Quiet title
A court action to settle who owns a property. It can matter when ownership is unclear after a sale.
Recovery agreement
The written contract between a claimant and a finder or firm describing the services and fee. Many states require certain wording and disclosures.
Redemption period
The time after a sale during which the former owner may pay what is owed and reclaim the property. Surplus funds often cannot be claimed until it ends.
Sheriff’s sale
A public sale of property run by a sheriff, usually to satisfy a court judgment or foreclosure.
Skip tracing
Locating a person’s current contact information, such as phone numbers, emails and addresses, using public and licensed data sources.
Solicitation rules
State rules on when and how a recovery firm may contact a claimant. Some states restrict outreach for a period after a sale or require specific disclosures.
Statute of limitations
The legal time limit for claiming funds or bringing a case. Missing it can mean losing the right to claim.
Surplus funds
Money left from a foreclosure or tax sale after the debt, taxes and costs are paid. It belongs to the former owner or other parties with a legal interest.
Tax deed sale
A sale of a property by a government after unpaid property taxes. The buyer receives a deed, and any amount over what was owed may be surplus.
Tax lien
A government claim on a property for unpaid taxes, which can lead to a tax sale.
Tax overage
Surplus created when a property sells at a tax sale for more than the taxes, interest and costs owed.
TCPA
The Telephone Consumer Protection Act, a federal law that restricts certain calls and texts, including autodialed and prerecorded calls and calls to numbers on do-not-call lists.
Trustee sale
A non-judicial foreclosure sale run by a trustee under a deed of trust, common in states that do not require a court case.
Unclaimed property
Money or assets held by a state after the owner cannot be found, such as bank balances. It is separate from court-held surplus funds.
Warm transfer
A call transfer where the caller introduces the person to the receiving agent before connecting them.
This glossary is general education, not legal advice. Laws differ by state and change over time, so confirm details with the court, county or a licensed attorney.
