What Are Tax Overages?
How do counties come into possession of unclaimed funds from tax sales - tax sale overages?
The county offers a property at public auction for just the taxes owed - maybe $5,000 in a typical case. Everyone wants it at that price - so it's bid up until a winner is found - let's say $170,000. No bargains for you at the sale like you thought!
But this can be good!
If a property with $5000 in taxes is auctioned for $165,000, that means there is $160,000 left for the owner to claim! The county was only owed $5000 and they don't get to keep the rest in the states where we work this business. The owner who loses the property can come in and claim the funds.
Does this REALLY ever happen? All the time! Here's a "spy video" at a tax sale where a $5000 property actually goes to $167,002 - creating an overage of $160,000+. Watch to the end, it's actually kind of funny too:
Over the next couple days until we have our webinar, we'll explain more about how this can be a big profit center for us.
For even more information, grab our Tax Sale Overages insider's guide here.