Tax Auction Overages Will Make You More Money Than You Can use
If you’re involved in the real estate industry and haven’t dreamed up collecting tax auction overages as part of your real estate repertoire, or if you’re not involved in real estate but desperately want to own a lucrative home-based business, you’re going to love this.
Tax auction overages, or the money that is bid over the amount of taxes owed at tax sale, are not a new thing. They’ve been around forever and a very few individuals have been quietly cleaning up financially with them for decades. There are billions of dollars in tax auction overages sitting in government bank accounts that will never be reunited with their owners, precisely because so few people are working the business.
Basically, this is how it works: tax auction overages (and mortgage foreclosure overages, for that matter) are produced all the time in almost every state. In some states they escheat right away, but in many others, they are held for the former delinquent owner to claim. These owners often don’t know this, and move on, leaving the money behind. Sometimes years pass between when the taxes go delinquent and when the sale occurs, so sometimes these people are long gone.
Because tax auction overages aren’t held by a state agency, they aren’t generally unprotected to finder’s fee limits. So people like you can legally find these funds, locate their owners, and offer to reunite them with their missing funds (that they don’t know the source of, of course) for a 30-50% finder’s fee. Since these funds are often $10,000+, the owners are overjoyed at the unexpected windfall, and you make a nice $3,000-$5,000 per transaction. It’s a great job.
With foreclosure rates what they are, billions more will be produced over the next 5-10 years. Without someone to find their money, a lot of clueless owners will be losing a lot of hard-earned cash to the government.