Hooked on overages - is this your next money maker? There are a few things that you need to consider before you jump. The biggest part of your decision is in regards to the very definition of overages. Overages, aka excess proceeds, are monies that naturally occur when properties are sold at foreclosure auction. Overages come in two distinct types, just as foreclosure sales do.
1 of the foreclosure types is a foreclosure carried out by a municipality. A county tax foreclosure sale. This type is dealt with on the web and well known as a course that will get you hooked on overages. But many don't realize that there are major issues with this overage type. First of all, these type of excess funds are exceedingly hard to find.
Whenever a county government attempts to foreclose on a property over taxes, they must contact banks or mortgage companies that have an interest in the property. This will stop a tax foreclosure dead in its tracks. No bank is going to let a few thousand dollar tax bill have a detrimental effect on their $200K mortgage. Poof - the foreclosure over taxes is over.
That is not, however, the only issue with this type of excess proceed. Just as critical is the redemption period that goes with this. This period of redemption is a way for the past owner to redeem - or pay off - their property after the foreclosure is over. And they get the home back. In many States, this period goes way beyond the actual foreclosure date. In some instances, this can be over a year. When they do their homework, folks realize that they really do not want to be involved with the tax sale overage type of surplus. The hottest surplus fund type to go after is generated from mortgage foreclosure sale auctions. Far from scarce, these represent a crazy opportunity. In this instance the redemption period can be over at the auction sale, or shortly thereafter. And no one is going to swoop in and pay off the mortgage to protect their interest.
Okay, maybe we're getting ahead of ourselves. Not everyone reading this article will know what excess proceeds represent. Overages are monies created when a property is foreclosed on and it brings more than the total outstanding owed.
The county government ends up with these monies. Notification of all potential parties with an interest in these funds falls on the county clerk. In the vast majority of times, this just doesn't happen. Behind any judgments or second mortgage holders, the owner foreclosed on has a right to the cash. The county keeps the money making interest along the way. Then its sent off to the state, who also makes interest from it.
Conveniently, these funds are not considered unclaimed property. So they never show up on state web sites. Your state will tell you that this is becomes determining the rightful owner is not alway easy to figure out.
The reason is that judgment or lien holder claims can expire.
Judgments and liens will expire over a ten year period. Mortgages, because they are no longer collateralized, also fall off in 10 years in most instances. Second mortgages and judgments falling off then can create a change of ownership. Even federal tax liens can drop off. As a result, putting a name into a web site yields nothing. Petition for the monies begins at the county level. Even if the monies have been escheated to the state.
The right system can help you get your hands on this money! No kidding.
And the right system is affordable. Its a steal at under 300 bucks. That versus the competition's 1600+ dollar price. While it will always be lower priced, it will increase to just under 500 bucks at beginning of April of this year.
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Hooked on Overages
