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).