| Government foreclosure auctions are an excellent | | | | owners. It may sound complicated, but that's due to the |
| investment opportunity. Tax foreclosure properties are | | | | fact that there is generally very little discussion about |
| at all time highs due to the ailing real estate market. | | | | this topic. There's a good reason for that. The |
| Many economists and financial gurus have stated that | | | | government is entitled to this money after a certain |
| this period will be a "defining moment of wealth building | | | | amount of years if it is never claimed. So there is no |
| for many folks... who know what they're doing". | | | | incentive to "chase down" the original owners. That |
| However, even if you hate owning property, you can | | | | would only eliminate additional funds that the state |
| still get real estate sized paydays from government | | | | could later apply for its own expenditures. This is |
| foreclosures a different way. | | | | precisely why an opportunity exists for someone who |
| How? By exploiting real estate overages created at | | | | researches these overages. Once you find them (they |
| these government foreclosure auctions. | | | | are public record and thus freely available for public |
| During the bidding process in real estate tax sale | | | | viewing), you can assess a 30% to 50% service fee |
| auctions, prices can rise quickly. As the bids rise they | | | | to the owner for helping them receive what was |
| eventually surpass the tax default amount owned the | | | | rightfully theirs. |
| property. This extra over-bid amount is commonly | | | | The overage business has proved to be extremely |
| known as an "overage". Overages, by state law | | | | lucrative for many private investors who have found |
| definition in most states, rightfully belong to the original | | | | this alternative way to make money on properties |
| home owner that lost the house. Yet most property | | | | without any risk. Overages vary in price but are |
| owners are never aware of this and simply disappear | | | | commonly well into the tens and hundreds of |
| from the picture after the repossession of their home. | | | | thousands of dollars. Helping just a few ex-home |
| This is where a savvy real estate investor can reap | | | | owners a year get the money that is theirs to begin |
| sizable profits, without ever accepting any risk on the | | | | with can also mean an additional 50 to 100 thousand |
| property itself. | | | | dollars for you, as well. How's that for a win/win |
| Essentially, the task at hand is to identify where these | | | | situation. |
| overages are and reunite them with their rightful | | | | |