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Updated over 8 years ago on . Most recent reply

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Ashley G.
  • Specialist
  • Birmingham, AL
21
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39
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Verifying tax sale validity

Ashley G.
  • Specialist
  • Birmingham, AL
Posted

How do you verify the validity of a tax sale? In the case that you do purchase a tax lien or deed are there any measures that can be taken to protect your investment (preservation improvements ect). Also is there anything that can be done beforehand to protect your interest or at least alert you to the possibility of a void tax sale?

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Denise Evans
  • JD, CCIM , Real Estate Broker
  • Tuscaloosa, AL
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Denise Evans
  • JD, CCIM , Real Estate Broker
  • Tuscaloosa, AL
Replied

@Ashley G., I am the Alabama expert on tax sales.  Yes, it is void if the name called off at the auction is not the current legal owner of the property. When someone files for bankruptcy, they no longer own their assets, the bankruptcy trustee owns them.  So, the wrong name is called off at the auction and the tax sale is void.  You must check for dead people ("heirs of Joe Jones" is also the wrong name. There is no person called "heirs of Joe Jones" or "Joe Jones Estate"), voluntary transfers where the new owner forgot to assess in their own name, involuntary transfers such as foreclosure, and bankruptcy.  You are not entitled to be paid for preservation improvements if the tax sale is void. The only way to "cure" a void tax sale is to adversely possess the property for three years after you obtain your tax deed.

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