Got a letter about unclaimed funds? How to tell if it's legit

A letter arrives, or the phone rings: "You may be owed money after the sale of your property." If your first reaction is suspicion, good — that instinct protects you. These notices are sometimes completely real, and sometimes a scam. Here's how to tell the difference before you sign or pay anything.

First, the money can be real

When a property sells at a foreclosure or tax sale for more than was owed, the leftover surplus can belong to the former owner or their heirs. Companies that help recover it do exist and can be perfectly legitimate. So the letter itself isn't proof of a scam — what matters is how the sender behaves.

Red flags: reasons to walk away

• Upfront fees. Anyone asking for money before you've recovered anything — "filing," "processing," or "research" fees — is a warning sign.
• Pressure and deadlines as weapons. "Sign today or lose it." Real deadlines exist, but honest companies don't use them to rush you into signing.
• Government impersonation. Notices that imply they're from "the county" or a "government funds department." No private company is the government.
• Sensitive documents by text or email. Your ID and records should go through a secure portal, never loose messages.
• Hiding the free option. If they won't admit you can often file on your own at no cost, they aren't being straight with you.

Green flags: signs it's trustworthy

• No upfront fees — paid only if your claim is recovered, with the fee in writing in advance.
• They identify themselves clearly and don't pretend to be a public agency.
• They're open about your right to pursue a claim yourself.
• They use secure document handling and put terms in writing.

How to verify a notice

You never have to take a letter at face value. Because surplus and unclaimed funds are held by public offices, you can independently confirm whether money is being held — and you can search the free official unclaimed-property databases yourself. A legitimate company will welcome your verifying and won't pressure you to skip that step.

What to do next

Don't feel rushed. If a surplus exists, the law may entitle you to the full amount, and it isn't going to vanish because you took a few days to check. Verify the notice, confirm the fee structure, and only then decide whether to proceed on your own or with help.