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Bill

HB 1637

Prohibiting excessive fees or other charges for locating or recovering foreclosure surplus funds and other unclaimed property.

2023-2024 Regular Session Introduced by Joe Fitzgibbon and 2 co-sponsors

HB 1637 caps fees that locator services and attorneys can charge homeowners for recovering foreclosure surplus funds, preventing predatory charge rates on unclaimed property.

By resolution, returned to House Rules Committee for third reading.
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WeVote Research Nonpartisan
Bill Summary · HB 1637

Legislative bill overview

HB 1637 restricts the fees that intermediaries (locators, recovery services, and attorneys) can charge consumers for helping them locate and recover foreclosure surplus funds and other unclaimed property held by the state. The bill aims to prevent predatory practices where these services charge excessive percentages of recovered funds, leaving homeowners with minimal recovery despite significant unclaimed assets.

Why is this important

Foreclosure surplus funds—money left over after a lender recovers its debt from a home sale—legally belong to the former homeowner but often go unclaimed because owners don't know these funds exist or how to access them. Without fee limits, locator services can charge 25-50% or more, drastically reducing what homeowners actually receive. This bill protects financially vulnerable people who have already lost homes from being exploited during recovery attempts.

Potential points of contention

  • Discouraging legitimate services: Strict fee caps may reduce the availability of locator services, as the profit margin shrinks, potentially making it harder for people who need assistance navigating the recovery process
  • Definition and enforcement challenges: Determining what constitutes "excessive" fees and distinguishing legitimate recovery assistance from predatory services requires clear regulatory standards and state oversight capacity
  • Unintended consequences for legal access: If fee restrictions are too stringent, attorneys may decline to represent clients in foreclosure recovery cases, limiting legal options for those facing disputes over surplus fund claims

Compiled from official sources — confirm details with the bill’s official record.

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