Tax Overages Questions

11 Replies

So I see Tax Overages are starting to get popular again. Has anyone had any real success in being a tax overage finder. I see list all the time but Im not sure how to properly do this. Is there anybody out there who can tell me the ins and outs also the pros and cons of tax overages? 

Don't waste your time, it's a fruitless pursuit.  The "popularity" is just  a function of how many gurus are trying to make money selling you the "secrets".

Thats what I thought, just wondered if something had changed that would make Overages easier and possibly a fruitful side income. 

It is really an interesting business and doable if you have the time and understand each State and County's rules. There are a lot of Gurus out there to buy from and loads of info on the net. 

Do all the free stuff first and see if it is a fits you. 

I buy Discounted Mortgage Notes and use the information I've gotten from a Guru to see if there is an overage that I can nab. If I buy a note with a substantial overage as a lender I am entitled to collect it before the borrower. I lose the asset but gain the overage. "IF" the overage is at a good ROI I'll use it as my Exit Strategy. I've done 2

GC

Originally posted by @Gene Chandler :

It is really an interesting business and doable if you have the time and understand each State and County's rules. There are a lot of Gurus out there to buy from and loads of info on the net. 

Do all the free stuff first and see if it is a fits you. 

I buy Discounted Mortgage Notes and use the information I've gotten from a Guru to see if there is an overage that I can nab. If I buy a note with a substantial overage as a lender I am entitled to collect it before the borrower. I lose the asset but gain the overage. "IF" the overage is at a good ROI I'll use it as my Exit Strategy. I've done 2

GC

 Gene we need to talk,

tax collectors by and large have gotten wise and really frown on non owners collecting overages.

remember these folks all go to conferences together.. and they NO like those that chase these. 

so in some jurisdiction waste of time but in some maybe.. pretty tough gig frankly

@Jay Hinrichs Hi Jay, from what I have read only 3 states don’t allow that but all other states allow it. I am interested to know when you say the jurisdiction frowns upon it, is it the change in the laws or are they scrutinizing it heavily making sure all “t”s are crossed and all “I”s are dotted or is there more? I have personally never done this but when I read about this business it sounded interesting.

I think the most challenging part may be to locate the original homeowner and to convince them to deal with you.

I agree with @Jay Hinrichs . Tax collectors have gotten wise to this, they do not like it and they will make it difficult on you if you try this. You almost have to get the defaulting owner to collect all the money and hope they will pay you a commission.

@John Underwood   @Amit Ronghe   Exactly it maybe legal in the state but the tax collectors in the counties hate it.. and will do everything they can to protect the monies due to the landowner who lost the property.. 

@George Frye

Curious by what you mean when you say “popular again”

I agree with most that it’s not worth time or effort and trainings are ramping up as many jurisdictions have tax sales coming up in August and the fall and it’s the ways for “guru’s” to start advertising training which for this 99.9% can be found free online and as others mentioned it’s not worth the chase.