Several years ago, I heard about tax overages after learning about it through a tax lien program and would like to start applying this strategy.
1) How do I find out whether there are specific statues or finder's laws for overages or excess proceeds in my state? Who would I need to contact to find out more information?
I don't really want to contact the county if I don't have to...
An attorney, perhaps?
Thanks in advance!
I am not familiar with what you are talking about. Overage in property taxes paid? Even if there is such a thing, which I am not sure there is, a third party could not lay claim to said funds. Each state has "Unclaimed Property" laws which sounds like what you might be talking about, however a third party can not make claim unless there is a relationship that can be shown, like an heir or spouse, etc.
@Ned Carey have you ever heard of this ?
@Dion -- I apologize, I left out an important detail out. I'd be matching up ex-owners to unclaimed monies upon contingency of a 25-30% finder's fee.
It's an old, old game with lots of competition. Each state has different laws. Talk to the local tax offices--why would you not?
@Dion DePaoli thanks for the heads up.
As @Wayne Brooks said this is an old game. Just like all tax lien investing it is easy to make sound really good but it is a tough game.
For Dion and others that may not know what is being talked about; When a tax lien buyer bids at auction they are often bidding how much they will pay for the house when they foreclose. This is the case in MD. The money above and beyond the taxes goes to the homeowner or other lien holders in the chain of title. Often the homeowners do not know they are owed this money so people charge a fee to claim it for them.
One problem is finding the appropriate people. If they are easy to find they probably got the notice and claimed their money. It is the ones that are hard to find or the complex estates and multiple heirs that can make this difficult.
Even knowing who is entitled to the money can be difficult to figure out. Is it the mortgage company or the homeowner for example.
If you are in a liberal area, you will be perceived very badly for taking advantage of homeowners. If it would bother you to see your name in the headlines of the local newspaper for taking advantage of homeowners, this is probably not the business for you.
This is not do it yourself stuff. You need to speak with an attorney who is familiar with tax sale and tax sale surplus and have them draft you appropriate documents. Good luck - Ned
@Ned Carey -- Thanks for the word of caution.
I heard about this strategy, again recently, from a friend. What sounds 'too good to be true' usually is 'too good to be true'.
I guess I'll definitely be staying away from this strategy...
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