Bessemer, AL · Member since 2017 · 14 posts · 2 votes
Just bought my first house for back taxes. Sold to the state of Alabama 2015.Received A tax certificate 6-23-16. Went by the house its empty but has real estates Sign.Saying it for sale with a lock box.Can i call the Agent and ask Her to move Sign and lock box.And remove listiitsLook up its a short sale
JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes
9y
Do not listen to advice from ANY out of state investor about Alabama tax sales, unless they tell you they specifically know about Alabama. Our state has tax sale laws completely different from anyone else.
In Alabama, tax certificate owners are entitled to possession as soon as they receive their certificate. Take possession yourself, and begin making your preservation improvements. If and when the bank finally gets around to foreclosing, they will have to redeem from you, pay you taxes and 12% per annum interest, plus the VALUE of your preservation improvements and 12% per annum interest. The value is the amount by which your repairs increase the value of the property, for most things. The first time you cut the grass and clean up the lawn, it will increase the value. After that, it will only maintain the value. For those subsequent lawn care item, the value is equal to the cost. You are also entitled to be reimbursed for casualty insurance premiums, plus interest. If you put a tenant in the property, they will have to vacate within about 30 days after redemption unless the new owner wants to keep them in place. But, you will get to keep all the rents you've collected in the meantime.
Three years after the auction date, you surrender your tax certificate to the probate judge of the county where the property is located, pay a $5 fee, and receive your tax deed. There is NO foreclosure of tax certificates in Alabama.
Welcome to BP. If you purchased a tax lien certificate you do not own the property until you foreclose on the property. Find out what the redemption period is in your jurisdiction. The bank is still marketing the property because the bank still owns it.
Welcome to BP. If you purchased a tax lien certificate you do not own the property until you foreclose on the property. Find out what the redemption period is in your jurisdiction. The bank is still marketing the property because the bank still owns it.
Alabama grants certificates holders the right of possession. Yes he does not own it but he can legally take possession now. The redemption clock starts all over again from the day he takes possession.
JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes
9y
Do not listen to advice from ANY out of state investor about Alabama tax sales, unless they tell you they specifically know about Alabama. Our state has tax sale laws completely different from anyone else.
In Alabama, tax certificate owners are entitled to possession as soon as they receive their certificate. Take possession yourself, and begin making your preservation improvements. If and when the bank finally gets around to foreclosing, they will have to redeem from you, pay you taxes and 12% per annum interest, plus the VALUE of your preservation improvements and 12% per annum interest. The value is the amount by which your repairs increase the value of the property, for most things. The first time you cut the grass and clean up the lawn, it will increase the value. After that, it will only maintain the value. For those subsequent lawn care item, the value is equal to the cost. You are also entitled to be reimbursed for casualty insurance premiums, plus interest. If you put a tenant in the property, they will have to vacate within about 30 days after redemption unless the new owner wants to keep them in place. But, you will get to keep all the rents you've collected in the meantime.
Three years after the auction date, you surrender your tax certificate to the probate judge of the county where the property is located, pay a $5 fee, and receive your tax deed. There is NO foreclosure of tax certificates in Alabama.
Bessemer, AL · Member since 2017 · 14 posts · 2 votes
9y
Thanks for everybody quick response. I will take ownership and start doing my repairs.Bathroom floor rotton.Kitchen has hole in floor. Deck rotton and cause the the sill around the house to become rotton.Got a big projects ahead of myself
JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes
9y
@Theorun Maxwell, you can do the repairs yourself. The measure of the additional redemption charges is how much you've increased the value of the property, not what it cost you to make the repairs. That would not be fair, if you did all the work yourself and spent only $100, but increased the value by $15,000, for the taxpayer to redeem and pay only $100 and get a property worth $15,000 more than when he failed to pay his taxes. Nobody would ever pay their taxes in that circumstance, gambling that other people will fix it up for them, basically for free.