Updated over 8 years ago on . Most recent reply
Tax certificate home is up for sale
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
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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.