If I bought a tax lien in Alabama for a commercial property, is is best to start seeking possession or wait for the interest to accumulate a little before filing for possession? I realize there is a 3 year rule to have possession. I am wondering if waiting is good because there would be costs associated with filing possession and if the owner redeems immediately after filing possession will I be on the hook for the filing fees?
Also would be better to seek possession and assign it to a management company so they can maintain the preservation costs which may make it less likely to argue on the costs involved?
I guess I am trying to understand the most effective strategy once the tax lien is bought?
JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes
7y
@Srini K., if you have a tax certificate you must give written notice to surrender possession and then wait 6 months before filing ejectment. With a tax deed you can give as little as 10 days notice before filing. It is VERY dangerous to just take over a property and change the locks even if vacant and badly neglected, because that is not the same thing as abandoned. If you file an ejectment lawsuit and they redeem, they will have to pay your attorney and filing fees in addition to the normal redemption amounts. I like to file ejectments early to force people's hands. If they are going to redeem, I want them to get it over with and do it instead of keeping my money tied up until THEY feel like redeeming.
Thank you for the reply. Could you suggest any attorneys who specialize in this type of work? What would be lowest expected cost? Can the initial letter seeking possession be written by the lien owner or by the Attorney?