SERVICES
We are experts in State and Governmental unclaimed funds working to help individuals recover overages all over the US. We help homeowners recover overage (surplus funds) after Foreclosure or Tax Sales. Millions of dollars in excess funds are left unclaimed due to lack of information.
Tax/Mortgage Overages
Bankruptcy Asset Recovery
State Asset Recovery
How It Works:
There are several States that sell Tax Liens in a bid up process known as a premium bid. This is where the face value of the lien is bid and won by the highest bidder. On quality properties, it’s not uncommon to have these liens bid up to 50% or more of the property’s value. In other words, if there is a $100,000.00 property that had $2,000.00 in delinquent taxes, it is very possible for that lien to be bid up and sell for $50,000.00, especially if there is interest (%) paid on the surplus or premium amount.
This type of surplus includes States such as Indiana, South Carolina and Alabama to name a few. Let’s assume our example took place in Indiana. This is a very common occurrence in Indiana because an attractive interest rate is paid on the surplus amount. Here is what happens if the lien is redeemed – the lien holder gets their principle back with a handsome return (they would receive the amount they bid, $50,000.00, plus interest on the $50,000.00). On the other hand, what happens if the property does not redeem – what happens to the $48,000 that was bid above and beyond that bid amount? If the delinquent property owner loses the property (and only if he/she loses the property) then the delinquent property owner may be entitled to $48,000.00. The county gets to keep the surplus amount if it is not claimed by the delinquent property owner. This creates the classic example of a conflict of interest – the county certainly would keep it but the laws dictate that the surplus amount should be returned to the original property owner.
At least in theory, the money should be returned to the original property owner, but how often does it really happen? The fact of the matter is, in Indiana, the property owner has 2 years to claim the surplus funds. The way the property owner learns about his rights to claim those funds is by having the county notify him. This presents another interesting conflict of interest. The county stands to benefit if the money is not claimed – they get to keep it. Nevertheless, they are supposed to notify the property owner that he has a right to claim the surplus funds.
How Are Homeowners Notified:
Most Counties make a minimal effort to notify the property owners. The most common method is by sending a First-Class letter to the address where the previous owner may no longer live. If you lose your property in a tax sale it usually means there are a lot of financial problems (medical bills, illness, job loss, etc.). Usually due to not receiving the notification from the county and having moved to a new home with a change of address, the previous owner never receives the notification and doesn’t find out they are owed this money.
Delinquent Tax Sale vs Mortgage Foreclosure Surplus Recovery:
Tax deed and mortgage foreclosure sales are a very similar process. While the process may be different the idea remains the same. Counties hold the tax and mortgage surplus amounts and don’t make much effort to pay them out.