Understanding the Basics: What Exactly Are Tax Sale Overages?
At its core, a tax sale overage, also known as surplus funds or excess proceeds, is the money left over after a property is sold at a tax foreclosure auction and all outstanding taxes, penalties, interest, and sale costs have been paid. Imagine a scenario where a property owner falls behind on their property taxes. To recover these delinquent taxes, the local government or tax authority will eventually put the property up for public auction. If the winning bid at this auction exceeds the total amount of taxes, fees, and costs, that excess amount constitutes the tax sale overage.
This isn’t a windfall for the government; it’s money that rightfully belongs to the former property owner, or in some cases, other lienholders who had an interest in the property. The concept is rooted in the principle that the government should only collect what is owed to it, and any surplus from the sale of private property should be returned to its rightful owner.
Tax sale overages are not a myth; they are real funds that can provide a significant financial recovery for former property owners. While the process requires diligence and an understanding of the legal framework, the rewards can be substantial.
PREMIUM Overages Overflow® Membership is required to enroll in this course.