Alabama Tax Liens: What fees to charge?

6 Replies

I recently purchased a tax lien from the state of Alabama. The tax sale date is 5/23/2017. I went by the property multiple times. There was no indication of someone living at the property while waiting to the certificate. Once I finally received the certificate, I went by and still no sign of someone living there. Power company said the power had been off for three months. I had a locksmith come out. Once inside, i notice furniture is still all over the house. I go ahead and replace the door lock since the locksmith basically just ripped the lock off. I go back the next day and there is a note saying "please don't remove items from house, i want to redeem." Though I was hoping to use the as rental property, i know i have to allow them to redeem.. since all i had done was remove and replace the locks, legally what can i charge on top of the taxes owed for the owner to redeem?

Originally posted by @Brandon Watson :

Only interest? At what rate? And is there any way I could add the cost of the locksmith? 

 You didn't repair anything that was broken. Now if the door was completely missing or a vandal kicked it off the hinges and you replaced it, that would have been a repair.

The original owner of the property still haven't redeemed or reached out after I sent a breakdown on the back taxes plus calculated interest owed.  Is it still within reason to add insurance to the property starting the first of next month? I already had a quote done, however after I received the note saying they wanted to redeem I did not proceed to insure the property. From my research, adding insurance not only protects my investment, the previous owner must pay back the full premium plus 12% as well as the taxes owed.  

Originally posted by @Brandon Watson :

The original owner of the property still haven't redeemed or reached out after I sent a breakdown on the back taxes plus calculated interest owed.  Is it still within reason to add insurance to the property starting the first of next month? I already had a quote done, however after I received the note saying they wanted to redeem I did not proceed to insure the property. From my research, adding insurance not only protects my investment, the previous owner must pay back the full premium plus 12% as well as the taxes owed.  

 I would talk to him, for any affidavit filled out put an expression date.

Do not charge him things that you have not paid.  Play fair. 

Originally posted by @David Tubesing :
Originally posted by @Brandon Watson:

The original owner of the property still haven't redeemed or reached out after I sent a breakdown on the back taxes plus calculated interest owed.  Is it still within reason to add insurance to the property starting the first of next month? I already had a quote done, however after I received the note saying they wanted to redeem I did not proceed to insure the property. From my research, adding insurance not only protects my investment, the previous owner must pay back the full premium plus 12% as well as the taxes owed.  

 I would talk to him, for any affidavit filled out put an expression date.

Do not charge him things that you have not paid.  Play fair. 

 I agree. Definitely trying to play fair. I haven't with through with the insurance yet