Alabama Tax Deed Question

6 Replies

When an investor surrenders a tax certificate for a tax deed through the probate office does that change how the former owner redeems the property? I assume once you get a tax deed it is recorded in your name through the county probate. Does the former owner that has redemption rights have to bring a suit against you to redeem?

Thanks

The former owner accomplishes redemption directly with the tax deed owner.  Currently, the former owner must pay the overbid, plus taxes and interest, to the investor. Then the former owner can claim the overbid at the County. It makes redemption virtually impossible. There is a class action lawsuit pending over this issue. Look for the law to change.

Is there a formula or spreadsheet available that could be used to calculate what the former owner would pay assuming the tax deed was purchased from the state OTC with no improvements? In my case a vacant lot in Jefferson county Alabama.

Originally posted by @Gene Walker :

Is there a formula or spreadsheet available that could be used to calculate what the former owner would pay assuming the tax deed was purchased from the state OTC with no improvements? In my case a vacant lot in Jefferson county Alabama.

 
I have not proven this to be effective, but I think for Jefferson County AL, they have on the tax assessors page you can request a payoff the quote and see the cost of redemption.

I don't know if this works for ones that have gone past 3 years.

I have seen the redemption tab on the CAP, but it doesn’t appear to calculate the 12% interest that is due to the investor. Thanks for your reply David.

After further research on the subject I see where the redemption amount is calculated by Jefferson county on the Citizens Portal. The 12% anum is just what it says it is. You will get the full 12% if you hold the property for a full year otherwise you will only earn interest on the number of days you have held the tax certificate / deed.

Please correct me on this if I am wrong. Still trying to learn the ropes.

God help us all who can't multiply percentages. I've been to court twice and nobody is checking my math.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here