Learning About Tax Sale Overages: A Beginner’s Guide

Counties are allowed to sell properties used in non-payment of property taxes through a tax sale at community auctions. These sales present one of the ways through which the local governments can recover the unpaid taxes. However, what most people do not realise is that an overage of tax sale is the greatest opportunity that can come unexpectedly to property owners and researchers who are intelligent enough to exploit this treasure. Let’s start Learning about Tax Sale Overages

So What Are Tax Sale Overages?

Excess proceeds or surplus funds, more commonly known as tax sale overages, happen when a property sells beyond the taxes owed. An example would be where a house legally owned that is out of tax in the amount of $5,000 would be sold on a tax auction to a new owner in the amount of $50,000, the government retains the 5000 and the rest, or 45000, becomes an overage. The government has no share in this money, it is the property owner or other legal claimants who get this money.

Who Imports Tax Sale Overages?

The legal right of the overage is in favour of the old property owner in most instances. Nevertheless, there might be other parties that had an interest in claiming the property, like mortgage holders, lienholders, or heirs, also depending on the laws of the particular state and the order of priorities of debts.

Learning about Tax Sale Overages is important. Essential to remember is that not every jurisdiction automatically informs property owners about overages. In other words, in the event that the rightful owner fails to claim funds within a prescribed period of time (dependent on the state), then after expiry of the period, the state may permanently take over the money.

Where Can You Find Out Available Overages?

Every county is administering its tax sale and surplus process. Others have overage lists posted on the Internet, whereas others need formal requests or to visit the clerk or treasurer's office in person. It is important to know the way the local or target jurisdiction addresses overages.

This is the way to Learning about Tax Sale Overages:

• Go to your tax collector or clerk of court website.
• Search wording such as surplus funds, excess proceeds, or tax sale overages.
• Talk to local officials to learn procedures and claim forms

Can People Make Money Helping People Claim Overages?

Yes. Others have turned into entrepreneurs selling the excess in tax sales to their former property owners. This is termed as overage recovery or funds locating. The fee (typically a percentage of the overage) that these professionals require to handle the paperwork, do research in records and pursue government offices is one of the things that motivates them to do such work.

There is, however, a need to act in an ethical, legal way. In many states, there is a requirement for:

• Registration or licensing
• An agreement was signed with the legitimate claimant
• Limits on the prices you are able to charge

Why is this important?

To the property owner who has lost his or her home in a tax sale, learning of the tax overages may mean that he or she can recover thousands of dollars ($10,000 or even thousands more) that he or she may have never known were there. To the researcher and practitioner, the knowledge of this process can provide access to a legitimate and much underrated niche that exists in the real estate and financial service worlds.

Final Thoughts

Learning about Tax Sale Overages is very important. Tax sale overages are obscure but significant property taxation practices. Whether you are the former property owner, heir, or are interested in assisting others in retrieving lost capital, it is a wise action to be informed on the basics of tax sales overages. These extra monies can translate into actual financial rescue or even opportunity with the right knowledge and sound research.