Asset Recovery
Are you curious about how to recover your assets? Is there money owed to you by the county?
What is Asset Recovery?
Before we discuss how to recover your assets, let’s first define what that may mean. In most tax defaulted auctions, recovery may apply when properties are sold for more than the owed back taxes.
Property owners who forfeited their property due to nonpayment of taxes, or properties that may have sold for amounts exceeding the delinquent taxes will result in opportunities to be recovered.
Tax Delinquent Property Auctions
What happened? The property owner failed to pay the required property taxes. In every state, the legislature mandates that property owners must pay their fair share of budgeted property taxes.
The legislature empowers the county board of supervisors or county commissioners to assess, levy, and collect taxes.
When property taxes go unpaid, the treasurer is authorized to seize the real estate. The county then announces a tax defaulted property auction, which is advertised online on the county website and in the local newspaper. These tax delinquent property auctions are open to the public.
Calculating Asset Recovery
How do you calculate your asset recovery?
For example, suppose a property’s assessed value is $75,000. The bidding at the auction starts at the amount of the back taxes, which is $5,000. However, aggressive bidders push the auction sales price up to $45,000.
All $45,000 is paid to the treasurer at the auction, yet the unpaid taxes were only $5,000. Therefore, the overage is $40,000.
So, the county sold the property at auction and received $45,000, which more than covered the taxes, leaving a $40,000 overage with the treasurer.
Claiming Asset Recovery
The county’s responsibility is to seize the property, resell it to the highest bidder, and use the proceeds to pay off the delinquent taxes. Any funds received in excess of the delinquent taxes belong to the property owner.
If the property owner fails to come forward to collect the $40,000 overage from the example, it remains with the county.
The county will hold the funds, and if no one makes a claim, the money will eventually escheat to the state, meaning it will be confiscated and lost to the property owner.
To claim your assets, schedule a consultation with us today!
Conclusion
Asset Recovery may occur when a county seizes real estate for unpaid property taxes and sells it at auction. If the auction price exceeds the amount owed in back taxes, the surplus is known as a recovery.
Who has rights to the recovery? The property owner who lost the property does.
However, property owners may not always be aware of this, and county officials do not always proactively notify them. If the owner does not claim the funds, they revert to the county.
To claim your assets, the property owner may schedule a consultation with us to initiate the claim process.
Miod and Company
Contact Us
Address: 27200 Tourney Rd #290 Valencia, CA 91355
Phone: (818) 898 9911
Email: contact@miod-cpa.com
