Tax Sales and Mortgage foreclosure overages/overbids/excess proceeds

Some overbid states are India,South Carolina and Alabama, you will need to go to th county courthouse and review the sales for the property and note an liens and judgements.

The procedures for claiming overbid refunds are simple, but will require some research on your part as each jurisdiction is different. In basic terms they are as follows:

1. Identify the properties where the former owner has funds coming to them. Based
on the type of funds they are as follows:
a. Lien Sales: Only those sales where the lien is sold to the highest dollar
bidder apply. The lien must not have redeemed and the property must have
been lost by the delinquent owner. Otherwise there is no overbid to claim.
b. Deed Sales: Only those sales where the jurisdiction DOES NOT take title to
the property prior to sale. You must determine this by contacting the
jurisdiction directly…we do not have the answer for 5,252 different
jurisdictions. The bid must exceed the amount owed for delinquent taxes,
interests, costs and penalties.
c. Foreclosure sales: The sale amount must exceed the encumbrances.

2. You can often get a jump on this process by attending the sale and noting those properties that sell for more than the minimum bid. This applies to all three types of overbid sales. If you cannot attend yourself, have a “temp” go and note the sale price for all properties.

3. Locate the individual who is entitled to the money. You have their name from thesale publication. You have their former address from the sale publication. Use skiptracing methods like intellius.com or whitepages.com to locate them.

4. Get them under contract where they agree to pay you a percentage of what you recover. The rate you may charge is determined by statute in some states.

5. Make sure you have spoken with an attorney in the state you are working in so you understand all statutory requirements for that jurisdiction.

~ Erica

Thanks for responding, Do have any suggestions for Charlotte,NC. on what should I do first to get results. Like what do you say at the courthouse to view these sales and how many years do I go back to research.

First LOOK up the law for your state for your self! The reason for this is the county people will outright lie to you about the overbid money.Then after you do that then you go to a tax sale with a pen and pad! Find out when, where,the tax sales are held then you regerster for the sale! At the tax sale!Then you get a list of those properties and start writing down those BIG numbers! Don't worry about the small numbers! Word of advice take some money to the tax sale even if its $400. You might be surprise!!!!

Thanks darrellf, I will start with that and let you know my progress. You are right, this county has already lied several times even with a blind pitch. his info should get me in the door. Thanks again. PS; "Your Attitude Will Determine Your Success"

I live in NJ and i would like to know if this business is good to get started in my state? Also, where would i get the contract to legally protect me and my asset? Do i need a business license to get started? What is the best way to get started with this business? Looking forward hearing from u guys thanks!

The courthouse folks may not be lying as they could just be unaware. I reside in Cumberland County Maine. I would like to start exploring this close to home
but have found it difficult to know where to look or who to call initially.Any suggestions would be appreciated

Thanks

Rich

Thanks

Rich

Where do you file a claim for a bank foreclosure overage?

Should contracts with clients be written up by a professional or is there a website where I can get a copy of one?

does this apply when they are only bidding on interest rates and not dollar amounts?

does this apply when they are only bidding on interest rates and not dollar amounts?

Be aware that some states require you to be a registered Private Investigator to be able to pursue and collect these funds. I believe there are 38 states that do not require you to be a PI.

I understand the finders fee agreement form, and the power of attorney form, but what third form do you use? Appreciated your help on this issue.
Frank

I did this for awhile in Indiana. Got a list from one country. Spent lots of time finding the owners who lost their homes to tax sale. Sent a letter describing the procedure. Spent more time convincing them it's not a scam. When I finally got several people to agree to sign my fee agreement. I then sent them the POA. Once returned I would send them the final document. Which was the Claim form for signature. I tried to be discreet so they would not know who the entity was that was holding the money. However, the former homeowners did a bit of research on their own and 4 of them circumvented me. I stood to earn a few thousand $$. But instead, got nothing. All my efforts of being transparent and caring, never asking them for one penny to retrieve the funds on their behalf, wasn't enough for these people to not care about me. I even sent them self-addressed STAMPED envelopes to return the docs to me. They would never have known about the money if I hadn't done all the research to find them and still they thumbed their noses at me. So, that's how it worked for me. It didn't. I was really ticked and gave up.

Seemed like a slam-dunk to me in the beginning. But it burned me in the end.

Good luck to you. Let me know what your outcome is.

Linda

Well i started this myself, and in the state of Florida, there is a lot of opportunity to get these claims.

based on what i read, seems you were doing a little too much, the POA give you the right to fill the claim out in your name, so you never needed any signature on the claim form from them, you fill it out and sign it once you have the Limited Power of Attorney.

your finders fee agreement has to be structured in a way where you let them know you are claiming unclaimed funds that was found, i tell my client that it was from a property sale. they review and sign it, now that document is basically covering both of us, it structure:
1) what i am doing for them
2) the non upfront charge (deal)
3) if claimed successfully then i ask for 10-15% of funds.
4) no claim, no charge.

once signed then i am covered and oh in the finders fee it clearly states it is valid for a year which is the time frame for them to claim in my state, or upon disbursement of funds to me or client and that if they claim after signing, without me, that's fine but i am still owed my finders fee. which i can research and find out if they have claimed and if they did, it also said appropriate actions may be taken.
legally binding document, they cannot go behind your back once you do that, even if they did and you find out, once you structure it right they still have to pay you.

that's why i am not doing so bad with mine at all, got two claims working right now 50k total for me and they get there money of course.

so not quitting as yet.

any questions email me or post comment back let me know.

thank you.

how would i get started in south carolina?

This little known and little understood idea of tax sale overages or tax sale overbids could change the financial future drastically. Until now, it has largely remained a secret, only known by a small-percentage of investors.The truth of the matter is most of the people that do know about this untapped gold-mine would prefer to keep you in the dark but that is about to change.

Does each state have their own time frame before you start legal process to close out the deal so you can wrightly own the property?

Would love more info on this. I just watched a webinar about this yesterday with Bob Diamond.

Hey I stumbled across your comment and I'm just wondering how your doing with this if your still doing it. I also live in Florida and am interested in trying this out. Do you need to be an investigator or attorney to do this or is it different because it's at the county level. ANY information on this would be appreciated. Also I was convicted of a felony in 2011 so i don't know if that matters or not. Thanks.

Hi, I am also in Florida in the Tampa area, I am also a licensed private investigator. Would you know where to obtain the list for the tax sale overages, There is a guy Bob Diamond who is selling a course on this for $1500.00 I don't believe we need to spend that . If you need to find the owners I can do that for you.
Steve

Hi all
I am new to the real estate world. My neighbor is a real estate investor and I don't have the means to the funds to enter that world but this overage recovery sounds right up my alley. I just don't know about the contingency letter. How do you go about making it catch someone's eye and then get them to trust you.
I am gung ho to know.

Florida is one of those states that requires you to be a PI, CPA, or attorney in order to act on behalf of claimants of unclaimed funds. Since you are a licensed PI, you would just need to register.

No, you don't.
http://www.bizfilings.com/toolkit/sbg/finance/basic-accounting/unclaimed...

No you don't.
http://www.bizfilings.com/toolkit/sbg/finance/basic-accounting/unclaimed...

YES you do! Feel free to look at the statutes from the state of FL covering this! YOU can claim whatever you want that belongs to YOU, but if someone else is acting as a claimants representative, there are specific rules and laws that must be followed in the state of FL.

Chapter 717, Florida Statutes, provides that Florida licensed private investigators, attorneys licensed to practice in Florida and Florida CPAs may register with the Bureau of Unclaimed Property to act as Claimant's Representatives. Please review Chapter 717, paying particular attention to section 717.1400 (Registration), section 717.135 (regarding Power of Attorney requirements) and all sections related to the filing and documentation of claims as well as the rules contained in the Florida Administrative Code