Tax deed investing/Tax lien

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Tax deed investing/Tax lien

Tamika Rue
Member since 2018 · 57 posts · 3 votes

Hello all. I received my tax lien to a property a few weeks ago. It is occupied. This will be the last occupied property I purchase but anywho without it being a tax deed I have to wait 6 months before I can evict. I tried contacting the owner but no luck. I spoke with the people who's staying there and she claims her uncle is the owner. I don't think they are taking this situation serious but I'm getting antsy with my investment. At first I wanted to keep it but at this point I don't care if they redeem. Is there anything else I can do other than wait? I don't want to keep bothering the people that stay there but I really would like to get in touch with the owner so I can at least know if they plan on redeeming

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  • Josh Carr
    Wholesaler · Lehi, UT · Member since 2015 · 333 posts · 144 votes
    7y

    @Tamika Rue Even if the property owner plans on redeeming they still can ride out the redemption time frame as that is their grace period prior to foreclosure.  If they don't redeem does the property have to go up for sale again or how does the foreclosure process work after you have passed the redemption period?

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  • Tamika Rue
    OP
    Member since 2018 · 57 posts · 3 votes
    7y

    They can ride out their grace period but in 6 months whoever is occupying the property will get evicted. I would do it now but I'm a lien holder so I have to wait 6 months til I can file ejectment. Then I plan on going in and doing repairs. They will have to pay me the back taxes, plus what it cost to evict plus interest plus the repairs. So I'm hoping by then they can't afford it and I'll be stuck with them. If they don't redeem in time I will eventually get a tax deed and then I can have the titled cleared so I'll be the owner with no liens or anything

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  • CJ Ball
    Investor · Virginia Beach, VA · Member since 2017 · 19 posts · 11 votes
    6y

    I read your post and just curious, how did it go?

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  • Tamika Rue
    OP
    Member since 2018 · 57 posts · 3 votes
    6y

    @CJ Ball buying an non abandoned, occupied lien without knowing what I’m doing was a huge mistake. I’m just going to give a little run down, I purchased the lien last yr in may. The owner sent the affidavit, I really thought there would be some kind of timeline of when they had to redeem. I know they have 3 years but I didn’t put an expiration date on the affidavit because I didn’t know and also the owner said he was going to redeem soon and he never did. As far as me signing the affidavit, I signed it and sent it back quick thinking he was going to redeem soon. After so long, I decided that I didn’t want to wait on him any more and I wanted to take action. I waited out my 6 months and went to the court house, only for the redemption clerks to tell me that there’s nothing I can do to the home at all because I’m not the owner (which I know isn’t the truth). The people at the court house were rude and no help at all. I knew there was something that could be done so I can go in and start making repairs to the home. I want to do everything the legal way, that’s why I didn’t go in when I first purchased and change the locks. So i followed up with Denise Evans and she helped me out a bunch.  Everything Denise told me to do, the people at the court house told me different. They even told me I couldn’t put a expiration date on the affidavit, so basically they’re saying I just have to wait until the owner redeems which I know is a bunch of bull. So I decided to sale the lien for $1 to my mom. So now we are waiting until it turns into a tax deed so we can file for ejectment and hope the judge 

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  • Tamika Rue
    OP
    Member since 2018 · 57 posts · 3 votes
    6y

    Gives us default judgement so we can go in and start doing repairs, I really just wanted my money back. But this is the consequence of not paying your property taxes. I gave him several chances, now I’m going to do what I can to keep the house.

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  • Denise Evans
    JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes
    6y

    @Tamika Rue, while people at the courthouse might know their internal rules and procedures, they do not know the law. Never take legal advice from a courthouse clerk, especially since there are usually signs everywhere that say, "We do not give legal advice."  As far as that affidavit form, there is nothing official and legal about that form. It is just a made-up thing recommended by the Alabama Department of Revenue so probate judges (who are the ones who are SUPPOSED to be handling redemption matters, not tax collector employees) can satisfy the requirements placed on them by the Alabama Supreme Court to make sure investors have been paid for improvements before issuing redemption certificates.  You can write anything you want on it.  Once you have gained lawful possession, it doesn't end (under pre-2020 rules) until the taxpayer redeems.  A taxpayer telling you they are thinking about redeeming, or similar words, means you SHOULD (but are not required to) stop everything and wait a reasonable amount of time for them to complete redemption.  But you don't have to stop and give them all the time in the world.

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  • Tamika Rue
    OP
    Member since 2018 · 57 posts · 3 votes
    6y

    Thanks Denise, this will be their 3rd year not paying their taxes. Does the 3 years start after the lien is issued to me? Or the year when they stopped paying the taxes? Also, what would you consider as a reasonable time for them to redeem? It’ll be one year this month. I’m glad that I took your advice with all of this. I’m going to file ejectment next week, hopefully I can get default judgement 

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  • Denise Evans
    JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes
    6y

    @Tamika Rue In most counties, the three years they can redeem administratively, through the county, runs through the last day of the month for the tax sale anniversary. So, if it was May 19, 2017, the county will let them redeem all the way until May 31 of 2020. Some counties cut if off on May 18 2020. I think Jefferson lets them have until the end of the month.

    If someone tells me they are going to redeem, they either have the money or not. I give them 10 calendar days. If they don't redeem in that time period, then they didn't have the money to start with. What they should have said to me was "Someday in the future I plan to redeem if I can get the money together," not "I've started to redeem, please sign this form for me."  If you did not give them a specific deadline, then 30 days is more than enough reasonable time. File ejectment.

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  • Tamika Rue
    OP
    Member since 2018 · 57 posts · 3 votes
    6y

    Yes ma’am, thanks so much. After I file ejectment, would I get something in the mail telling me my next step? Maybe a court date or something?

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  • Denise Evans
    JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes
    6y

    @Tamika Rue, if you own the property or certificate in your own personal name, you can file your own ejectment lawsuit. I highly recommend signing up for AlaFile at https://www.alacourt.gov/ so you can do everything online, and receive online notices, exactly the same as the lawyers. If you own the property or certificate in the name of an LLC or corporation or trust or IRA, you will have to hire a lawyer. You are not allowed to represent those entities in court unless you have a law license, even if you are 100% owner. If you hire a lawyer, you can sign up for Just One Look at the same link above, to view the court file and keep track of things and keep your lawyer moving forward at a fast pace to get your ejectment order.

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