All Forum Posts by: Denise Evans

Thanks, Will.

The owner or lienholder can redeem. The mortgage company could have redeemed before they foreclosed. After they foreclosed they could redeem because then the owner. Once they sell to a third party, that third party can redeem but not the mortgage company.

The tax sale trumps the foreclosure. Whoever owns the property will have to redeem from the tax sale.

The tax sale investor has the right to take possession. If the property is legally abandoned, they can take DIY possession. properties are rarely legally abandoned.  If the tax sale investor has not taken lawful possession, then the deed owner is allowed to take possession and keep it until dispossessed by an ejectment order from a court.

If the investor files an ejectment lawsuit against the deed owner, the deed owner will be able to redeem but will also have to pay the legal fees. As a result, it is important to redeem as quickly as possible BEFORE things get more expensive.

If the investor takes lawful possession and makes "preservation improvements" then the deed owner will ALSO have to pay that.  If you need a referral to an attorney, connect with me and send a PM and I'll send you a list.

Section 40-10-197

(a) At any time not less than three years after the auction or sale of a tax lien but not later than 10 years after the auction or sale, if the tax lien is not redeemed, the holder of the tax lien certificate may bring in the circuit court of the county in which the property is located an action to foreclose the right to redeem and quiet title to the property in the name of the holder of the tax lien certificate. If any applicable law or court order prohibits bringing an action to foreclose the right to redeem and quiet title to the property, the limitation provided in this section shall be extended 12 months following the termination of the prohibition.

Thanks, Jerel.  I remember Georgetown. Beautiful!!!  I was down in Houston. Lots of opportunities for world class art, entertainment and shopping, but who had time because commuting 29 miles took 1.75 hours each way.  

I am VERY knowledgeable about Alabama tax sale overbids and the circumstances under which a third party can partner with the taxpayer or buy their rights and get the money, but I confess I don't know which other states have that possibility. I'm not asking anybody to give away their strategies, but can you share with me if your state has tax sale overbid money and if third parties can claim it? I don't want to research 50 states and DC and Puerto Rico just to find out IF they have overbids, and only afterwards research the law in the relevant states. I'm putting together a survey of who does, and who does not, and cites to statutes, so I can include a chart in my next book.

Thank you.

This is just general advice to everybody who has ever been involved in sports.  You know how important it was to know the other team.  Maybe you watched game tapes. Maybe you listened to your coach who made notes of games or team competitions.  Whatever, you needed as much information about the other side as you could get so you could design a strategy and so you would know what was likely to happen if something unusual came up.

Tax sale investing is the same way. The former owner, or the heirs, are the other side. Learn as much as possible about them, THEN strategize.

@Ahmad Moore, I'd track down the former owner or heirs just to figure out what is going on in their lives and whether they would be likely to sign off on a quitclaim deed for very little money.  If you decide to file an ejectment you'll need to know where they are so you can serve lawsuit papers on them. If you can find all owners and know where to serve lawsuit papers on them, you can do the quick, easy, and cheap in personam quiet title lawsuit, which is good.  Don't do anything for about six months after you get your deed. If you decide to sue for ejectment, you can also sue for the reasonable rental value of the property as damages, so that works out for you tactically.  Right now, gather all the information you can. Then reach out to me.

Jonathan Keith with Keith Realty in Mobile

@Justin Bentivegna you should be able to get my contact info off my profile. if not, send me a pm and I'll provide it.