Investor
Hey Gerald, long time no hear. Sure I have some good info for ya. Is the offer still on the table for coming to CO, I may be heading out your way in January. I have addressed this previously, on this page: http://www.floridataxsale-foreclosure-info.com/tax-sales-blog.html see title "Florida Tax Deed Auction Surplus, Why You Can't Get It" Guru premise is that you can, after a tax deed is issued, contact the prior owner get them to quit claim their severed interest to you and you can then claim the auction overage. Here's my short version: The purchaser of that interest held by the prior owner does not carry the right of claiming the overage unless specifically stated in the conveyance, so stated by a Deputy Clerk of Courts. So Joe lost his property because he couldn't pay the taxes and the county auctioned off the tax deed. You track the auctions and call Joe offering to buy his property interest. Joe says sure for $300 and you are thrilled as you know there is $3500 in overage to claim. Quit claim deed is signed and then Joe gets a letter from the Clerk's office saying there is $3500 in overage to claim so he submits his claim and gets the $3500 + keeps your $300 and there is nothing you can do about it. Then a few weeks later you are named as a defendant in the quiet title action which will indeed damage your credit and possibly cost you your job if you work in certain finaincial/banking/securities industries. So, you quit claim your interest to the tax deed holder and hopefully recoup your $300. There is only one way to claim the overage in this situation. It must be specified in the quit claim deed that the interest conveyed includes claim to any and all auction overage derived from the tax deed sale. This was told to me by a Deputy Clerk of the Circuit Court. The other option: Saw it on you tube. Contact the prior owners and offer to assist them in claiming the overage in exchange for a percentage of the proceeds. According to the Detroit youtube video guy who I must say had flare but seriously lacked math skills, you can get 30%. If you intend to do this you must be quick. Most counties in Florida send out the letter of Notification of Auction Overage within 5-7 days. So, if you can get an agreement signed by all owners of record before they receive the letter good going. But even with the agreement you will likely see little gain without constantly having to threaten suit for breach of contract. As it typically takes 90 days for the overage to be released. And, if the prior owners contest the release of overage, appear before a judge and claim you were acting in their regard for the release of the funds it will be a really bad day for you. I do not believe you can act in regard for the prior owners and have the overage released to you for allocation to the owners unless you are their attorney so stated on the affidavit which must be signed and sent in with your overage claim. A Tip:If you plan to do this, which I wouldn't, I would stick to county auctions online and specifically those counties using Grant Street Group as their tax deed/foreclosure auction host. Their online records access is great and you will be able to see the opening bid, winning bidder amount, see the tax deed files O&E report which will tell you if the property is worth chasing. Get on the phone immediately and start calling. If you do decide to do this in Florida let me know as I would like to have a sample copy of your contract with the owners for posting on my site. O.K. maybe it's not such a short version afterall. Nice to hear from you again, hope all is well. Click here to read or post comments.
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