NJ AG, Consumer Affairs File Suit Against "Foreclosure Surplus" Chaser

From the office of the New Jersey Attorney General:

• "The [NJ] State Attorney General's Office and the Division of Consumer Affairs have filed suit against a Gloucester County businessman who allegedly collected tens of thousands of dollars in surplus funds that homeowners otherwise would have received for a small fee after their homes were sold in foreclosure. The state's two-count complaint against Samuel E. Goodwin, III is the first action filed under the state's Consumer Fraud Act to address deceptive practices in the area of surplus funds recovery. Goodwin allegedly charged homeowners 15% to 65% of the total surplus funds to which they were legally entitled by misleading the homeowners into believing that the process to recover the funds was complicated and could not be filed by the homeowners on their own."

In New Jersey, defaulting homeowners whose homes sell at a foreclosure sale auction for more than the amount owed to the foreclosing mortgage lender (Editorial Note: currently uncommon in many areas given today's real estate market conditions; but was happening with tremendous frequency as recently as two years ago) can reportedly claim the excess or surplus funds (Editorial Note: subject to the claims of secondary lienholders) by filing a simple form available from the Superior Court Trust Fund Unit and after paying nominal fees totaling less than $100.

For more, including how a New Jersey resident can file a complaint with the state if they were subjected to a surplus funds scam, see NJ Attorney General Press Release - State Files Suit Against South Jersey Businessman Who Allegedly Engaged in Deceptive Practices Against Homeowners in Foreclosure.