Tax Sale Overages Will Make You More Money Than You Can Spend

Published: 21st January 2010
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Most people don't know what they are - most people haven't even heard of them. Call up your best friend and ask him what he thinks happens when you lose your house to tax sale. Betting dollars to doughnuts he'll guess that the evil tax-man takes everything.
Well, unfortunately, in about half the states in the U.S., he's right. If you lose your property, you lose any equity you had right along with it. The government keeps your tax sale overages, every last dime of it. It's not fair, but government isn't exactly known for being "fair," and we all know that the government will take whatever money it can get its grubby paws on from us.
In the other half of the states, however, the government holds the tax sale overages - that is, whatever amount was bid at tax sale over the amount owed in taxes - for the owner. Seems a little more fair, right? Not really. The government gets to keep this money if the owner doesn't come in to claim it within a short (1-5 years in most cases) period of time.
Here's the kicker: how do they notify the former owner? They've lost their house, the one with the address on file with the county! The government sends out a postcard informing the owner of their tax sale overages - to an address where they don't live anymore. Brilliant.
How often do you think the owner even finds out? How hard do you think the governmental agency is going to work to find them, when they get to keep all the tax sale overages that owners don't collect?
Are you sensing a wee bit of an opportunity here? If not, your wee-bit-of-an-opportunity sensor is broken.
These funds are held at a county level, not a state level, so they're not subject to state level unclaimed funds finder's fee caps. The owners are missing. You put the owner together with his money, that he has no clue exists, and charge a 40-50% finder's fee to collect it on his behalf. He feels like he's won the lottery, and your bank account is heavier to the tune of $10,000+ a month. That's if you're working, oh, 30-40 hours a week on it.
It's perfectly legal (and has been proven so in several court cases) - for now. If you're going to get in on this business, get in fast before the government decides to change the laws.
When collecting overages, it's key to understand how to approach the owners so they don't try to avoid your fee. Read the *free* Hooked On Overages "Insider's Guide" Click here now:
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