What are tax overages?

How are overages created?

Tax overage is a term that refers to the excess amount of money that is generated when a property is sold at a tax sale for more than the amount of taxes owed by the owner.

This surplus money belongs to the owner or their heirs, but they may not be aware of it or how to claim it. Tax overage can also be an opportunity for investors or entrepreneurs who can help the owners recover their money and earn a percentage of the recovered amount.

However, tax overage laws and procedures vary by state and county, and there are some risks and challenges involved in this process.

Escheat, huh, what?

What an apropos term, escheat, when the government cheats a citizen out of their money.

Essentially, each state is a three, five or seven year state. This is the amount of time you have to recoup your funds before they escheat to the state forever. Some states do not even offer this process and just keep the money.

Escheat is a legal term that refers to the transfer of unclaimed property or money to the state. This can happen when the owner of the property or money dies without a will or heirs, or when the property or money is left dormant or inactive for a long time. Different states have different laws and procedures for escheatment and reclaiming property.