Notes and tax sale overages

[Chris Seveney]

Good evening all, here is a question I wanted to throw out there. I was reviewing a tape (I am a note investor) which had a lot of properties which were sold at tax sale on them (I.e. Worthless) - but I noticed on one property there appeared to be a tax sale overage (which would go to the bank). I called the county and they confirmed there was an overage. My question is, can an investor buy the note - get it assigned and claim the overage? My gut tells me no as the overage is due to the entity who held the note at time of foreclosure but I can also see an entity being able to sell their rights.

[Walter Roby jr]

In Nevada you can have someone claim it for you as long as the finder's fees are disclosed and capped at 10% I believe. The counties then cut two individual checks to both parties. And per the California Revenue and Tax code, others can claim on one's behalf as long as the claimants have been informed of the source of funds, correct accounting distributions, and that they have every right to redeem the overages on their own at no cost from the given jurisdiction.