Specialist · Mobile, AL · Member since 2019 · 6 posts · 2 votes
I am a wholesaler in Alabama, & I have a house that I can get under contact at a good price. The homeowner is out of state, & the property has been vacant for about 2 years.
I ran a preliminary title search, & found that the property has a State of AL tax lien for about $600, if redeemed before 09/30/19. Basically, if the home owner could pay the $600 in taxes before that date, he could sell the property & transfer the title free and clear.
The problem is that he is unable to pay the the tax balance due.
Is there a way that I can structure the deal so that the $600 tax payment can be paid before or at closing by the end buyer, creating a clear title that can then be transferred?
I have not invested in tax lien properties i the past because of Alabama's "detailed" redemption laws, so any help would greatly appreciated.
@Lorenzo Stevens - as Wayne said, the tax lien will be paid at closing. You will just need to let your end buyers know that it is there so they can account for it, or let the owner know it will come off the top of their sales price.
@Jamie O'Brien@Wayne Brooks Thank you both!!.... I assumed as much, but I've also been advised not to assume anything "common sense" when it comes to tax liens in AL.