How to make money with Tax Sale Overages

Tax sale overages, also referred to as excess proceeds or surplus funds, are a potentially overlooked treasure trove to the real estate and financial world. Although a lot of individuals may consider tax lien investing or bidding in auctions of properties, only a few have the idea of making money by assisting others to get back money that was left behind following a tax sale. When you are interested in a low-risk means of getting into the real estate world or financial service world, then looking at how to make money with tax sale overages may well become your next big step. Now let’s know about how to make money with Tax Sale Overages.

What are Tax Sale Overages?

When a property owner neglects to pay their due property taxes, then the local government can put the property up for a public auction to recoup the amount owed. In many cases, property is sold at a higher price than the amount that a person owes in taxes, fees, and penalties. The additional amount of money - the overage- is under the legal ownership of the initial property owner or his successors.

But in the majority of cases, these owners do not have the idea that money waits for them. This leaves open a gap to be filled by a person like you who can jump in and assist in recovering those funds and pocket some percentage of the recovered amount.

Ways You Can Earn Money

1. Locate Unpaid Overages

The initial procedure is the discovery of tax sale surpluses. These are normally posted on the county websites or the Two by Two records. It will require a little research--each state and every county has varying laws as to the reporting of overages, and as to how long the original owners are allowed time to claim them.

You can have some people invest in special software or databases to make such a process easier, but you may also do it yourself as long as you are willing to take the time.

2. Locate the Previous Owners

When you succeed in detecting an overage and knowing how to make money with Tax Sale Overages, then dealing with the rightful owner is the next step. This may include conducting searches by public records, people-search services or even the employment of a private detective when dealing with individuals who are difficult to trace. A large number of the overage finders specialise in wanting to trace heirs to a person whose original owner has died.

3. Agree to Help Them Take the Money

You get in touch with the owner (or heirs) and promise to assist them in collecting the money at a rate of commission, which is usually 10 to 30 percent. Under a written agreement, which will specify your fee and duties, is usually the arrangement you will work under.

Staying truthful and/or professional is vital because it is a very ethical business involving human beings, and they might be having difficult times.

4. Claim to the County

As soon as there is a signed agreement, you assist the owner in turning over the paperwork which he needs to keep his claim of the overage. Depending on where one is, the process may take a few weeks to a few months.

When it is settled, the county writes a check, typically to the property owner, who writes you a check (the amount is agreed upon at the time of the claim).

Considerations: Things to keep in mind on how to make money with Tax Sale Overages

• Household state laws: There are state laws that may regulate, or put limitations on how overage finders may follow.
• No upfront charges to the owner: Most professionals are on contingency to gain trust.
• Persistence is key: This is an investigative, cold-calling/follow-up business.

Final Thoughts

So, now you must know how to make money with Tax Sale Overages. Tax sale overages are a legitimate chance at developing a part-time business and even a full-time business without upfront investment. It is a demanding process which involves patience, research, and outgoing social skills. However, to those who are ready to learn the tricks of the trade, it is reasonable and ethical to be beneficial to people whilst putting some money in your pocket.