Tax Overages are created from a Tax Auction. When an owner fails to pay their taxes the property goes into auction. Depending if the state is a Tax Lien or Tax Deed state will determine if they are given a redemption period. Some states allow ‘overbidding’ at auction. So Mary Jane owes $5,000 in back taxes and she didn’t pay. Investors, businesses attend County Tax Auctions and bid on the property. So if you bid $7500 and I bid $10,000 and I am the highest bidder there is a $5,000 overage/overbid/surplus which then belongs to the owner of the property.