Researching who is owed the overbid amount
As stated previously about the terminology, “Overbid” is the amount above the starting bid amount. This does not mean it is the actual surplus available to the previous owner of the property.
First, we want to say that you do not have to limit yourself to assisting the previous owner make a claim. There are plenty of superior lien holders who lose out on claiming any of the overbid because wither they do not know about it (there are a LOT of Tax Deed Auctions, every day, in every county) or they put in a claim too late. You are free to locate the lien holders and offer assistance to them as well.
The first money that comes out of the overbid is any money due to the county and city (Back taxes, City Fees, etc).
Next, there are Superior lien holders to consider: Mortgage Holder, IRS, Judgement against the property, Mechanic Liens, Home Owners Associations Fees.
These lien holders typically have 90 days to put a claim in, which is why counties will not do a thing with a claim from a previous owner until 90 days after the date of the sale. These ‘superior lien holders’ are given a chance to get their claim in on time.
If you are assisting the previous owner, it’s suggested you do not wait the 90 days however. Just because the clerk of court will not process your claim until after 90 days, does not mean you shouldn’t get it filed.
A lot of properties that sell through tax deed auctions are paid off, have no mortgage, owe no fees, etc and the overbid is 100% owed to the previous owner.
Using the Parcel Number of any Tax Deed Sale will show you who the owner was on the date of the sale (before the sale), so it is not difficult to find out who they are.
Our County Courses on FloridaOverbids.com will show you where and how to find the owner of every tax deed going to auction