New Lien Auction Changes in AL tax sales

[Ashley G.]

Now that we are switching to tax lien auctions how do you guys feel about the changes ?

How do you think it will effect your business?

What are some new strategies you're trying out?

Answer as many or little as you want I'm just curious for other investor opinions on the new tax auctions in Alabama

[John Underwood]

Have they changed it so it doesn't take 3 years of auction with a new auction and potentially 3 different lien holders?

Alabama has not been a good state to buy tax liens unless something has changed.

I received deeds to 3 houses that only took about 14 months last year in SC. I didn't have to foreclose or fill out any paperwork. I get a check plus interest or a deed in the mail.

[Thomas Kramer]

@John Underwood

As a tax lien holder, you can buy subsequent tax liens before the auction, at the initial interest rate ("First Right of Refusal"). The redemption period is still 3 years from the date of the first tax lien sale.

[John Underwood]

Quote from @Thomas Kramer:

@John Underwood

As a tax lien holder, you can buy subsequent tax liens before the auction, at the initial interest rate ("First Right of Refusal"). The redemption period is still 3 years from the date of the first tax lien sale.

So AL is still not a great (to put it nicely) state to invest in tax liens.