All Forum Posts by: Denise Evans

@Maurice George, you can pay the heirs for access to inspect the property and you can buy personal property. But, many times the children do not want their parents' name dragged through the mud of foreclosure lawsuits or foreclosure notices, and are also fearful that it might affect their inheritance in any other assets, such as cash or other real estate.  TThey will usually work with you.

@Shimira Greene, aside from lawful/legal possession issues, things are a little scary right now after the Equivest decision. We are hoping they will change their minds, or at least clarify a path of safety.

@Binh Nguyen @Shimira Greene  You cannot legally take DIY possession (without an ejectment order from a court) unless the property has been legally abandoned.  It's a little bit tricky. Vacant does not always equal legally abandoned, even if the property has been vacant for a long time and has significant deferred maintenance. I have some videos on this topic. Vacant does not mean legally abandoned.  You have to be very careful.  I also have some blog posts and articles about making improvements and what is compensable.

You also need to be careful about Alabama appellate court decisions in the cases of Equivest and Rioprop, which can contain traps that will come back and bite you and result in you not being paid anything at all but the former owner gets the property back, or being paid only for taxes and interest (but no improvements) and the former owner gets the property back.

@Stephanie Barnes, Shelby County for sure, for several years. I have heard stories that other counties did theirs properly, but could not independently confirm with county personnel. I've been to the Shelby County auctions for many years, so I remember they were done correctly. I remember thinking at the time how unusual that was, but attributed it to Bill Justice, the attorney for the County, who has been a tax sales expert going all the way back to his famous 1981 Cumberland Law Review article about redemption rights.

Tax sale trumps the lien.

@Roger GelpeyThe tax sale extinguishes the lien, leaving the IRS with only redemption rights. They will release their redemption rights upon written application. There is not a form, but there is a publication that describes what you must do. Go to irs.gov and use the search engine to search for release redemption.

Void sale

@Brittany Wilkerson, Assessed owner not the same as true owner at the time of the auction, usually because of death, sale or foreclosure. Or, taxes already paid. Or assessment wrong, such as its a vacant lot but was assessed as if it had a house on it. Or, recent Equivest decision that ruled any auction not held in front of door of court house is void. Most of them have been held inside the court house for many years. The Equivest decision is currently on a motion to reconsider, but for the time being, it's the law.

@Salvatore Spano. Alabama is a very landlord friendly state, property taxes are extremely low, expenses are low, and rents are among the highest in the US as a percentage of the acquisition cost of a property. Property insurance is slightly higher than other states, largely because of Gulf Coast hurricanes, but that is minor compared to the other low expenses.  Some Alabama municipalities are requiring a new inspection and new certificate of occupancy every time you change tenants. It is not widespread, but it does exist. Some municipalities do not yet have those ordinances, but are trying to pass them. Be sure to investigate that issue before buying.

Birmingham is a good rental market for modest and mi-range homes. Huntsville is a great market and will get ever better for landlords because of several factors related to Redstone Arsenal. As one example, there will be a large influx of short term FBI employees (12 month assignments) while the J. Edgar Hoover building in Washington is being condemned any all of the personnel are being sent out to field offices for a while. Tuscaloosa and Auburn are strong student markets for SFR, but Tuscaloosa is overbuilt with apartments. Let me know if you'd like advice regarding other areas.

@Brooke Dunn  You do not need to find the 2007 investor and get them to record their tax deed. They probably never surrendered their certificate to get a deed.  The 2011 tax sale wiped out whatever interest they had.  A title company will require you to file a quiet title lawsuit and obtain a quiet title order before they will insure title. Without title insurance, you will not be able to sell on a warranty deed for full retail price, and you will not be able to borrow money and provide a mortgage on the property. THERE ARE NO EXCEPTIONS to the quiet title lawsuit in Alabama, no matter what anybody else tells you.  Alabama tax sales law is far too complicated, and there are far too many ways for former owners to still have rights, for any title company to take chances without a quiet title order. If you will contact me, I will send you a list of lawyers who know this very specialized area of law. You can contact several of them and make a decision about who to hire.  I am retired from practicing law, so I am not on the list. This is not a "plug" for you to hire me.