TAX SALE ARBITRAGE SYSTEM

I am Not an attorney, Not giving legal or tax advise

Best efforts to find legal answers Law always changing Giving you more information in the online Resource Center and in the materials being shipped to you.

What are Unclaimed Funds Do Excess Funds Exist in your Area Why It Doesn t Matter if They Don t What you Need to Get Started

Generally, any money held by any institution that belongs to an individual or entity that has not claimed it.

Examples Unpaid insurance proceeds, stock dividends, retirement benefits, inheritance proceeds, income tax refunds, property tax refunds, oil and gas royalties, artist royalties, and uncollected wages The list goes on

The Unclaimed / Excess Funds created from Tax Foreclosure Sales

Tax Foreclosure Sale: happens when don t pay the property taxes for a certain period of time Mortgage Foreclosure: happens when don t pay the loan for a certain period of time

Every State is Different May have excess /surplus funds available from one type of foreclosure but not the other May have excess funds from mortgage foreclosure even it doesn t have excess funds from tax foreclosure sale

The Unclaimed / Excess Funds created from Tax Foreclosure Sales

-when Property is Foreclosed on And Sells for More than what is Owed, then Excess Funds are created

The legal owner of the Property prior to foreclosure is Supposed to Receive these Funds

Time passes between move date and the funds disbursement date; Person moves and doesn t realize excess funds, and leaves no forwarding address, Sometimes, person dies, County sending one mail contact insufficient

There is no incentive for the government agency to go out of its way to find them.. In fact, if the person does not claim it within a certain time, the government gets to keep it.

The Excess Funds escheat To the Government

Funds held by the County Different than Funds Held by the State

Unlike Funds Held by the State County Funds Escheat to the Government If Not Claimed within a Certain Time

State Generally Holds Funds Like: Unclaimed stock dividends, wages, retirement funds, insurance, etc.

County Deals with: Proceeds from the sales on the county steps

Person delinquent on property taxes Property is foreclosed on to pay those taxes Usually at public auction in the county where property located

Winning bidder is issued either: * a tax lien certificate, or * a tax deed Depends on the state where the property is located

In Tax Lien State: winning bidder gets a tax lien certificate that pays them a % return; winning bidder gets a lien on the property with priority over other lien holders In Tax Deed State: winning bidder actually takes ownership of the property

State Laws are Different, and always changing Most just require that a claim form is submitted Some have changed the law so that they keep the excess funds Some require a court order to release the funds

For example: In Arizona and Nebraska the law says that the excess funds from the tax sale go straight to the county In Minnesota, the law says the funds go directly to the state

For example: In a few states like Kentucky and Michigan, the first bidder who meets the amount that is owed gets the property So no excess funds are created in that case

Again, we are focused on the tax sale excess proceeds That doesn t mean that those states don t have mortgage foreclosure proceeds Maybe one of my awesome TSA students (you) can help me create that course

There are 15 states that don t have excess tax sale proceeds: Arizona, Colorado, Illinois, Iowa, Kentucky, Louisiana, Michigan, Minnesota, Montana, Nebraska, New Jersey, New York, North Dakota, Oregan, and Wisconsin

Most of the other states have excess funds available for Tax Sale Arbitrage deals For more info see the supplement material we have given you

Many states have money finder or locator laws that limit the amount you can receive However, these limits don t always apply at the county level

Tax Sale Arbitrage works on a County Level Not State Level and the Laws are often Different for the two

Check Law In Your Area

State law limits are any where from 5% (only Washington) to no limit Many states with no limit: Delaware, Idaho, Maryland, New Hampshire, Oregon, Pennsylvania, Rhode Island, South Carolina, Utah, West Virginia, Wyoming

Many states laws say the limit is no unconscionable amount --- - what s that mean? - what s your definition of unconscionable

Many states laws say the limit is 10% One of our first deals was in a 10% state We made $4,200 10% sounds bad? Not Really

Call & Ask County Treasurer Do Internet Search for Specific State &: Foreclosure Excess Funds Foreclosure Overbids Foreclosure Surplus Funds

May Not Get Right Person With Right Information on First Call Don t Give Up

What legal issues exist in that area? Limits on what money locators can charge? License requirements for money locators? Have to know the Law in the Area

Know the Law Example: Florida requires that money locators are either PI s, CPAs, or Attorneys registered with state and can only receive 20% and limited to $1,000 per account

This is a Virtual Business Can Do It from Anywhere Don t have to be Located in the Area You are Working

Phone Computer List Mindset / Goal

I know you have the Phone & Computer Going to show you how to get the list