You Found Overbids… Now What?
REMINDER: The term Overbid means the amount for which the tax deed sold OVER and ABOVE the starting bid. The starting bid is determined by the amount in property tax that is owed, plus if the property is homesteaded, the 1/2 the amount of the value of the property is added to the opening bid. However… if that 1/2 amount is added to the opening bid, that does not mean it is not available as a surplus after the auction. Therefore, even if you see an opening bid of $50,000 and it sells for $51,000, this does not mean there is only $1,000 in surplus. Research! The amount owed in property tax could be just $5,000 and that would leave a surplus of $46,000.
First, let’s have a look at a flowchart of processes after the tax deed auctions.
Further explanation can be found below the chart.