It’s disgusting. Governing bodies all over the country are HIDING MONEY OWED TO FORECLOSURE VICTIMS, and one government official even admitted it! Find out whether YOU’RE OWED MONEY and how to help the victims (and yourself) today. I’m Carole Ellis. This is episode 51.
I find this shocking, but hardly surprising. REI Today has firm, clear, indisputable evidence that government bodies all over this country are HIDING MONEY owed to foreclosure victims, and they’re not even particularly ashamed of themselves! I’ll tell you all the details today, including how one government official actually got extremely defensive over those funds confronted about them. But you don’t have to just believe me about this. A colleague of mine named Bob Diamond is an expert in this stuff. He’s a real estate attorney and an extremely active real estate investor, and he has made a career out of “Robin Hood Investing” wherein he EXPOSES exactly where this foreclosure money is hidden and helps the unknowing victims reclaim their cash.
When I talked to Bob about this issue, at first I found it pretty hard to believe that there could actually be hundreds of thousands if not millions of dollars of money sitting in government coffers waiting for foreclosure victims to claim it. After all, didn’t we create an entirely new set of laws and multiple new federal agencies to protect consumers and homeowners from this type of abuse? Well, yes we did (think Consumer Financial Protection Bureau and Dodd-Frank, folks) but let’s just say they’re not really very interested in righting this particular wrong. Here’s why:
Bob says that the key to the entire rotten process lies in foreclosure auctions, specifically foreclosures over property taxes. “When someone loses their home to tax foreclosure, they usually haven’t paid their property taxes in three or four years,” he explained, adding that usually this amounts to, at most, about $25,000 including fees and penalties. However, the properties in tax sales usually sell for about 70 percent of market value. National median home price is about $186,000, so that means that a typical home would likely sell at tax auction for $130,340. Subtract that $25,000, and you can see there is more than $100,000 left over, and by right – by legal right, this is not hypothetical in any way – that leftover money belongs to the former homeowner. However, and here’s the catch, the former homeowner must KNOW THE MONEY IS THERE and go through the proper channels to ASK FOR IT. Probably 99 percent of people (maybe even more) who lose their homes to tax sale have no idea what their home sells for or that any leftover money is there. Think about it: if you had just lost your home to foreclosure, would you attend the auction to watch it go? Probably not. And you, like the vast majority of homeowners, would therefore have no idea that the government had collected way, way waaaay more money on your home than you owed said government.
“I’ve been going to real estate tax auctions since 1989,” said Bob, “and I’ve only seen one former owner at a tax sale.”
“It’s really sad,” he added. “They lost their home, and now they lost all their cash as well.” But in reality, the government keeps the money forever if it is not claimed through the proper channels. “The governments wants you to lose that money and wants to keep it,” Bob explained. He added that many government officials are even defensive of those funds, and that one once explained in an interview when asked about the 95 percent (that’s right ladies and gentlemen, 95 PERCENT) of the foreclosure funds that go unclaimed, quote, “That’s our SLUSH FUND. You can’t take that away!” But in truth, it’s legalized theft. That money belongs to the former owners, not the government, and the entire system is rigged so that foreclosure victims have no idea WHO to ask for it, WHAT exactly to ask for, or HOW to go about it.
And that’s where Bob comes in, and where you as an investor OR a foreclosure victim need to come in too. Ladies and gentlemen, Bob did an entire training with our publisher, Bryan Ellis, on this topic, and he explained in detail exactly how it works, what you can do about it, and how to go about not only righting this egregious wrong and helping foreclosed homeowners but also make a good, solid, meaningful living at the same time that you can be very, very proud of. The training is free, but space is very, very limited so please do not delay. Head right over to www.rei.today/amazing to register for this free training. That’s www.rei.today/amazing, and when you’re done, be sure to check out images of just some of the checks that foreclosure victims have received as a direct result of Bob’s exposure of this legal (but I say it’s criminal) government habit of hiding money from people at one of the worst times in their entire life. You can see these images in the REI Today Vault right now by going to www.rei.today/vault. Not yet a member? No worries! Just text REITODAY no spaces, no periods to 33444 and I’ll immediately send you the information you need to get that access and ALSO provide you with fast, immediate access to all sorts of great trainings, news coverage, interviews, and lot more timely information that will help make your investing safer, faster, and more profitable.
And remember, when you do that, you’ll also be able to GROW YOUR NETWORK by interacting with me and your fellow listeners to REI Today… so stop by to ask questions, make comments and network with other investors across the country. Text REITODAY no spaces no periods to 33444 or head over to www.rei.today/vault right now.
REI Nation, thanks for listening in and always remember this:
Your best investment is your own education.
Carole Ellis is the host of Real Estate Investing Today, a popular 9-minute daily podcast focused on educating real estate investors about the important topics that will make their investing SAFER, FASTER, and MORE PROFITABLE. She's also the editor of the Bryan Ellis Investing Letter. She has more than a decade's worth of experience in and reporting on the real estate industry and, additionally, has written dozens of courses on the topic. Carole lives in Kennesaw with her husband, Bryan, and four children. She believes wholeheartedly that your best investment is always your OWN education.