How do you claim tax sale overages? Lots of people are asking that question. 

You might know what is tax sale overages business? Do you know how to claim tax sale overages? Depending on the place you are claiming from meaning the state you’re working in, there are two methods, and they’re going to use one or the other.  

  • Administrative Claim
  • Court System. Claim

Method Number One: Administrative Claim

Now, in most jurisdictions, it’s an administrative claim method. Here’s how you claim tax sale overages. Typically, it’s an administrative claim process. What that means is that the agency that has the money has a form that you fill in. All government agencies have forms, and you fill in that form. You hand it in with an ID. They process the claim and cut you a check.

Tax sale overages - administrative claim

The information that goes into the form is very easy. It’s typically things like the address of the property, the name of the person making the claim, who that person is, and who is going to be the former owner of the property. Most of the information is given to you on the list of overages that I teach you on another blog. 

So most of the information is very easily there. Pretty much anybody with just a couple of minutes of training can fill in these forms. Sometimes still have some accompanying things they want. They’ll typically want a copy of the person’s ID, and a couple of other pieces of information. 

What happens when you turn it in? 

The government agency will look it over. If they have any questions, they’ll ask. Typically, they don’t have questions. They’ll verify this information. They have the money, and then they cut you a check. 

Now you might wonder, what are they doing? 

Because it typically takes them a couple of months to cut a check. They’re going to be sending you all the extra money at the end of that. This process typically takes three to five months. Sometimes it’s way more faster. We’ve been paid on the same day, that’s not typical. 

So, the idea behind this business is you essentially set it up as a pipeline. It means, you put the deals in there, and you just watch them proceed down. There’s not much to do once you turn in the deal. This is a good business, but this is not making you rich overnight. It takes time to complete a deal. 

tax sale overages - court system claim

Method Number Two: Court System Claim

There are some other places that work through the court system. That’s where the court system is actually holding the money. They do something called Interplead the funds. The money is deposited into court by the taxing authority. Then they’re just waiting for someone to come and apply for those funds. 

This is not very complicated. This is a pretty simple process. But for that, you need an attorney. Typically, I tell my students to budget for those deals of $800 to $2,000 for legal costs. 

Surprisingly, it can actually be faster than the administrative process. You need to file a petition, that’s something your lawyer prepares. The petition just says here’s the property, here’s the person, here’s the money that’s left over, and we’d like to get the money. Then the court will ask the county for the proper documentation with the check. 

Now What Next?

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