What Happens If Your Surplus Funds Are Sent to the Wrong Person?

Imagine finding out that your foreclosure surplus funds—money that rightfully belongs to you—were accidentally sent to someone else.

It’s a nightmare scenario, but it happens more often than most homeowners realize.

Surplus funds can sometimes be misfiled, misdirected, or even claimed by the wrong person, especially when multiple parties are involved or when errors occur in the court or county office.

The good news? In most cases, it can be fixed — if you act quickly.

How Surplus Funds End Up in the Wrong Hands

There are several reasons why surplus funds might be sent to the wrong person or entity:

Clerical or administrative errors: A typo in a name, address, or case number can cause funds to be issued to the wrong claimant.
Duplicate or fraudulent claims: Someone else might have filed first—sometimes even by mistake or misrepresentation.
Multiple claimants: When several heirs, co-owners, or lien holders are involved, funds can be distributed incorrectly if the court records aren’t clear.
Miscommunication between agencies: Counties and courts sometimes handle payments through separate offices, and paperwork can get misplaced.

These errors are frustrating, but they’re not the end of the road.

What You Can Do If This Happens

If your surplus funds were sent to the wrong person, here’s what you should do right away:

Contact the Court Clerk or Treasurer’s Office
– Ask for documentation showing when and to whom the payment was issued. This helps verify whether the mistake is clerical or procedural.
Gather Proof of Ownership or Eligibility
– Provide court documents, deeds, or foreclosure records showing your legal right to the funds.
File a Motion or Petition for Reconsideration
– In most cases, you can formally request that the court review and correct the error. If the court determines the payment was made incorrectly, it can order the funds to be reissued to you.
Consult with a Surplus Recovery Professional
– Mistaken distributions can be complex to fix, especially when another party has already cashed the check. Professional assistance ensures the right steps are taken promptly.

Why Acting Quickly Is Critical

Courts and counties operate under strict timelines and limited jurisdiction. The longer you wait, the harder it can be to correct a mistaken distribution—especially if the recipient refuses to return the funds.

The sooner you raise the issue, the better your chances of recovering your rightful payment.

How Surplus Refund LLC Can Help

At Surplus Refund LLC, we understand how stressful it can be to lose funds due to a court or administrative error. Our team specializes in helping clients:

Investigate claim errors and track where the money was sent.
Prepare and file the necessary motions to correct mistaken payments.
Communicate directly with court clerks and county offices to expedite resolution.
Protect your claim rights against fraudulent or duplicate claimants.

We work to ensure that your funds end up where they belong — in your hands.

Take Control of Your Claim Today

If your surplus funds were mistakenly sent to someone else, don’t panic—but don’t wait either. With the right documentation and help, it’s often possible to recover what’s yours.