FORECLOSURE RECOVERY INC.

SHERIDAN, WY — February 9, 2026 — Foreclosure Recovery Inc. ("FRI" or "the Company"), a Wyoming-based foreclosure surplus fund recovery firm headquartered at 30 N Gould St, Ste R, Sheridan, WY 82801, today announced the expansion of its nationwide Foreclosure Recovery Program, a comprehensive, legally compliant initiative designed to help former homeowners across the United States identify, claim, and recover surplus funds generated when their foreclosed properties were sold at auction for amounts exceeding the total outstanding mortgage debt, liens, and associated costs. The program operates under the legal framework established by decades of state statutory law and reinforced by the unanimous United States Supreme Court decision in Tyler v. Hennepin County, 598 U.S. 631 (2023), which held that government retention of surplus equity from foreclosure sales constitutes an unconstitutional taking under the Fifth Amendment's Takings Clause.

The Scope of America's Hidden Foreclosure Surplus Crisis

Every day in the United States, approximately 1,500 homes enter the foreclosure process, resulting in roughly 45,000 foreclosure proceedings per month nationwide. According to industry data and Foreclosure Recovery Inc.'s own proprietary analysis, an estimated 84 percent of all foreclosure sales result in surplus funds—money generated when a property sells at auction for more than the total amount owed to the mortgage lender, junior lienholders, and applicable fees. These surplus funds, also commonly referred to as "overages," "excess proceeds," or "overbids," represent the former homeowner's accumulated equity in the property—equity that was built through years of mortgage payments, home improvements, and market appreciation.

The national scope of unclaimed foreclosure surplus funds is staggering. Billions of dollars currently sit in county court clerk accounts, state treasury offices, foreclosure trustee escrow accounts, and unclaimed property divisions across all fifty states. These funds belong, by law, to the former homeowners and their heirs—yet an overwhelming majority of these individuals have no idea that these funds exist, let alone that they have a legal right to claim them.

Foreclosure Recovery Inc. was founded on the principle that this notification gap represents a fundamental failure of fairness and transparency. The Company's mission is to bridge that gap by proactively identifying former homeowners who are owed surplus funds, informing them of their legal rights, conducting forensic audits of their foreclosure sale records, and managing the entire claims filing and recovery process on their behalf—all at zero upfront cost to the homeowner.

The Constitutional and Legal Foundation for Surplus Fund Recovery

The Takings Clause and the Fifth Amendment

The legal right of former homeowners to recover surplus funds from foreclosure sales is grounded in one of the most fundamental protections enshrined in the United States Constitution. The Fifth Amendment provides that private property shall not be taken for public use without just compensation. This Takings Clause has been interpreted by courts at every level to mean that when a government entity seizes and sells a citizen's property to satisfy a debt, the government is constitutionally prohibited from retaining any value from that sale that exceeds the debt owed. The surplus belongs to the property owner.

This constitutional principle traces its origins to English common law dating back to the Magna Carta of 1215. American courts have consistently upheld this principle since the founding of the Republic. In United States v. Taylor, 104 U.S. 216 (1881), the Supreme Court recognized that a property owner whose property was sold to satisfy a tax debt was entitled to recover surplus proceeds. In United States v. Lawton, 110 U.S. 146 (1884), the Court held that to withhold the surplus from the owner would violate the Fifth Amendment and deprive him of property without due process of law.

Tyler v. Hennepin County: The Landmark 2023 Supreme Court Decision

On May 25, 2023, the United States Supreme Court issued its unanimous decision in Tyler v. Hennepin County, Minnesota, 598 U.S. 631 (2023), a landmark ruling that has transformed the legal landscape of foreclosure surplus fund recovery nationwide. The case involved Geraldine Tyler, who owed approximately $15,000 in delinquent property taxes on her Minneapolis condominium. Hennepin County foreclosed on her property and sold it at auction for $40,000, retaining the entire amount—keeping not only the $15,000 owed but also the $25,000 surplus representing Tyler's equity.

In a unanimous opinion authored by Chief Justice John Roberts, the Supreme Court held that the County's retention of the surplus constituted a classic taking in violation of the Fifth Amendment's Takings Clause. The Court emphasized that thirty-six states and the federal government already require surplus proceeds to be returned to the taxpayer. The Tyler decision received extraordinary cross-ideological support, with amicus briefs filed by the ACLU, the Cato Institute, the Claremont Institute, the National Association of Home Builders, and numerous legal aid organizations. The decision has since prompted legislative reforms in multiple states to ensure compliance with the constitutional mandate.

The Public Notice Problem: Why Homeowners Never Learn About Their Funds

Perhaps the most troubling aspect of the foreclosure surplus fund crisis is the systematic failure of existing public notification mechanisms to inform former homeowners that they are owed money. In most jurisdictions, the only notification required by law is the publication of a brief legal notice in a newspaper of general circulation. These notices are buried among dozens of similar legal notices, written in dense legal language, and do not identify specific dollar amounts or include contact information. They are, in practical terms, invisible to the very people they are intended to reach.

This antiquated notification system persists despite the reality that the individuals most likely to have lost their homes—those experiencing financial hardship, job loss, medical crises, divorce, or displacement—are the least likely to be reading legal notices in local newspapers. Many former homeowners have already relocated by the time surplus funds become available. Others may be experiencing homelessness or staying with family members. Still others may have passed away, leaving heirs who have no idea they may be entitled to thousands of dollars in surplus equity.

Real Lives Changed: The Human Impact of Surplus Fund Recovery

Among the Company's most compelling recovery stories is that of a 73-year-old woman who had been living in a Walmart parking lot after losing her home to foreclosure. Displaced, elderly, and without the resources to navigate the complex legal process, she had no idea that $64,000 in surplus equity from the sale of her former home was sitting in a government-held account. Foreclosure Recovery Inc. identified her as an eligible claimant, contacted her directly, and managed the entire recovery on her behalf. The $64,000 recovery changed her life forever, providing the financial foundation to secure stable housing and address urgent medical needs.

This story is not an anomaly. Foreclosure Recovery Inc. has successfully served more than 3,486 recovery clients nationwide, with individual recoveries ranging from $10,000 to more than $100,000 depending on the property's sale price, the outstanding mortgage balance, and applicable state laws and fees. The average recovery represents a substantial and often unexpected financial lifeline for individuals and families who had assumed that foreclosure meant losing everything.

How the Foreclosure Recovery Program Works

Stage 1: Eligibility Determination and Free Assessment — The process begins when a former homeowner contacts Foreclosure Recovery Inc. or is identified through proactive outreach. The Company conducts a preliminary analysis completely free of charge, with results typically delivered within 24 hours. If no surplus funds are available, the homeowner owes nothing and receives a complimentary report at no cost.

Stage 2: Contingency Agreement — If surplus funds are identified, the homeowner signs a contingency agreement requiring zero upfront fees. The Company's compensation is structured as a percentage of funds successfully recovered—meaning the homeowner pays nothing unless and until they receive their money.

Stage 3: Forensic Audit and Title Search — The Company conducts a comprehensive forensic audit of the foreclosure sale, including a thorough title search to verify the homeowner's claim, identify competing liens, and calculate the precise amount of surplus funds available for recovery.

Stage 4: Filings and Agency Communication — The recovery process involves the preparation and filing of multiple rounds of legal documents with government agencies, courts, trustees, and state unclaimed property divisions. The process typically takes between two and six months, depending on complexity and agency responsiveness.

Stage 5: Fund Distribution — Upon successful recovery, funds are distributed directly to the homeowner's designated bank account. The fee structure is fully transparent: zero-dollar initial assessment, a success fee of 30 percent of recovered amounts, and all court filing costs covered by the Company.

Commitment to Ethical Standards and Consumer Protection

Foreclosure Recovery Inc. is committed to operating at the highest standards of ethical conduct, transparency, and consumer protection. The Company distinguishes itself through full transparency of all fees and terms before any agreement is signed, zero upfront fees of any kind, a no-recovery guarantee where the homeowner owes nothing if the effort is unsuccessful, strict legal compliance with all applicable federal and state laws, and industry-standard data security measures to protect all client information.

Important Legal Disclosures

Foreclosure Recovery Inc. is not a law firm and does not provide legal advice. The Company recommends that homeowners consult with a licensed attorney, housing counselor, or their lender regarding foreclosure prevention options. Recovery of surplus funds is subject to individual case evaluation and applicable state laws. Results vary based on property sale price, outstanding liens, junior mortgages, judgments, applicable fees, and state-specific regulations. Past performance does not guarantee future results. State claim deadlines vary significantly, ranging from two months to five years after the foreclosure sale. The estimated recovery period is typically two to six months.

How to Check Eligibility and Begin the Recovery Process

Former homeowners who believe they may be entitled to surplus funds are encouraged to contact Foreclosure Recovery Inc. for a free, no-obligation eligibility assessment. Online: Visit www.usforeclosurerecovery.com/claim-foreclosure-surplus-funds to complete the free eligibility form. Results are typically provided within 24 hours. Telephone: Call (888) 545-8007 to speak with a recovery specialist. Email: Send inquiries to claim@usforeclosurerecovery.com. Mail: Foreclosure Recovery Inc., 30 N Gould St, Ste R, Sheridan, WY 82801.

About Foreclosure Recovery Inc.

Foreclosure Recovery Inc. is a nationwide foreclosure surplus fund recovery company headquartered in Sheridan, Wyoming. Founded on the principle that every former homeowner deserves to know about and recover the surplus equity generated from the sale of their foreclosed property, the Company provides a comprehensive, no-upfront-fee recovery service that includes eligibility assessment, forensic auditing, claims filing, agency communication, and fund distribution. The Company has served more than 3,486 clients across the United States and is committed to operating at the highest standards of transparency, ethical conduct, and legal compliance. For more information, visit www.usforeclosurerecovery.com or call (888) 545-8007.

Editor's Note: This press release is distributed for informational purposes and does not constitute legal advice or a guarantee of results. Members of the media seeking additional information, interviews, supporting documentation, or expert commentary are invited to contact Foreclosure Recovery Inc. at (888) 545-8007 or claim@usforeclosurerecovery.com.

Legal Citation References: Tyler v. Hennepin County, Minnesota, 598 U.S. 631 (2023); United States v. Taylor, 104 U.S. 216 (1881); United States v. Lawton, 110 U.S. 146 (1884); Nelson v. City of New York, 352 U.S. 103 (1956); Fifth Amendment, U.S. Constitution.

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