Alabama Tax Deed-PLEASE HELP!
I have a couple of questions! Anyone that can answer them please do, it would be greatly appreciated.
A property in Colbert County Alabama was taken for tax's in 1998. We have a three year redemption time. I am assuming that since the three years has past that I will not be recieving a lein certificate, but in fact should be recieving a tax deed. After I recieve the tax deed I need to (ASAP) file the deed with the county judge of probate. Witch I have that part down. (I am still waiting on the tax deed)
Question 1, After I file the tax deed with the Judge of Probate, what is the next step, if my goal is to posess the title?
Question 2, Is there another time period the owner has to redeem the property at this point?
Question 3, There are people living in the dwelling, How do I find out who these people are (do I have legal right to go up to the door and ask?).
Question 4, How do remove these people?
Question 5, How soon after I file the tax deed to the Judege of Probate, can the property be put up for sale?
Thanks in advance for your answers![ Edited by randable on Date 06/03/2003 ]
Hello,
Question 2. According to the State's Attorney General, and the Courts, the three year redemption period starts the day the property is deeded. Not the date the lien is sold. Found it on the web.
Question 3. You have to hold the property adversely to the old owners for 3 years to get the deed. If the owners are living there, that will mess things up. Or at least extend them.
Question 4. Eviction. In Kansas, the County issues a Writ of Assistance. I am not sure about Alabama. Someone at the County should be able to give you a clue/tip. Ask the Small Claims Court where, and how to evict a tenant. It will probably be slightly different but it will give you a place to start. I would probably use an Attorney to be sure everything is done right.
I can't really help with the other questions. The additional three years was enough to keep my away for now. It's a shame. Their list has some great properties.
AG Opinion Tax Redemption
$.02
Steve
I am confused... alright.. if you make your purchase before the first three years are up then your purchasing a tax lein certificate. after the tax lein certificate is issued to you, and the first three years have passed then you get a tax deed. Witch you have to wait another three years? WTF... wish I knew that before I baught the tax deed... The land was taken for tax's in 1998. BTW thanks a bunch!
[ Edited by randable on Date 06/04/2003 ]
Stevesch, you are correct it is three years from date of the sale. However you are mistaken when it comes to the sell to who. It is three years from the date of the sale to the state. The property I baught had delinquent tax's from 1998. In 1999 the state put in the bid to purchase the lein. In 2003 I baught that lein (deed). Yesterday I recieved the deed to the property. I went to the recorders office, Had it recorded and am now the proud owner of a 45x150 piece of property.
A word of warning! When I originially got the map to the property from the count mapping department they gave me the wrong map. All this time (about two months) I have been looking at the wron property. I lucked out and the property that I actually baught is still worth about $13,000.00 and I paid $256.01. So there is still a profit to be made.
Hello, I am new to this site and to real estate investing. I have been following this thread very closely since I live in Alabama and want to get my feet wet in real estate investing here.
I've decided after some research that purchasing tax deeds in Alabama, Mobile County specifically, would seem to be the path of least resistance for me. So, I was happy to see that randable has actually done it.
Questions to randable:
What criteria do you use to purchase tax deeds in Alabama?
What research had you done on the property that you mentioned in this thread?
What are you planning on doing with the property? (selling, keeping?)
What are some of the red flags a newbie should watch out for before purchasing a tax deed in Alabama?
Can you name some of the common mistakes/misconception a newbie makes when attempting a tax deed purchase in Alabama?
I have more questions, but this will do for now
Thanking you in advance for any insight you can provide me.
First lets address the critera I use. I don't have the capital to sit on for three years right now, So I only look for property that has been up for auction and that has been sold to the state (what that means is, for example This piece of property had delinquent tax's from 1998, it was sold to the state in 1999, witch started the three year redemption period for the owner, I purchased the tax deed [it was a deed not lein certificate because the three years had past] in 2003) so that I would recieve a tax deed not a lein certificate.
The most important thing is DO NOT, under any circumstances purchase ANY property that you can not see first. Also after seeing the property, always be skeptical, if it seems to good to be true, it usually is. Make sure that you check the map/blk/lot numbers (usually lower right corner of the county map, center of the block, and in the property lines) against the county/state listing of the property. There is no "it is close enough" here they have to match exactly or you have the wrong map.
First red flag for me is, if the county map says there is supposed to be a road there & there is none. If someone is going to purchase this property they are going to want to see it first, If they have to cross someone elses land to get to it, that present issues that they may not like (for example aquiring a right-of-way) (not trying to say that these lands can not be profitable, but they are less desirable to a purchaser).
Research: Well at first I had done all kinds of research(2 weeks). But once I found out that the county had given me the wrong map (witch is why I tell you to make sure the map/blk/lot numbers matchs the description of the property above). Then I had to start over. Fisrt I physically looked at the property & neiborhood, also I asked neibors questions. Usually if you are polite people don't mind answering questions for you, and they can be a valuable source of information. (One main question I had asked is, is the owner still living and do you have contact information for them, you want to know from the owner if there are any tax execptions that they qualify for that the county/state may have over looked). Then I went to the county court house and looked for any kind of environmental issues with the property (ground pollution, etc...), then I looked in the public records for any leins on the property. Usually a Tax lein is a superior lein so all others are null, but there are exceptions to every rule.
What I plan to do with the property: Ultimatly SELL IT! But the property needs improvement. So what I plan to do first is inform the neibor that I have purchased the property and that he needs to remove the vehicle that is on center blocks there (politly of course). Then to do the improvements, there is some large trees there that in my opinion need to come down.
The property is in city limits (witch is something else I researched) and is near other houses so I know that utilities are very near to the property, so the cost of building will be lower, (don't have to run sewer and water very far, just from the road. Electricty won't cost that much either.)
Common mistakes: Well I have not really talked to many newbies, but I can not tell how important it is to research the property before purchasing it. Also MAKE SURE THOSE MAPS AND THE PROPERTY DESCRIPTION JIVE! Also after you purchase the deed (If that is what you are doing) Record it and assess it with the county A.S.A.P. If I think of some other common mistakes I will post them here. Been typing for a while
Sorry for any misspellings. If you would like I can e-mail you some helpful links, drop me a line @ **Please See My Profile** Hope this helps!
Quote:
Research: Well at first I had done all kinds of research(2 weeks). But once I found out that the county had given me the wrong map (witch is why I tell you to make sure the map/blk/lot numbers matchs the description of the property above). Then I had to start over. Fisrt I physically looked at the property & neiborhood, also I asked neibors questions. Usually if you are polite people don't mind answering questions for you, and they can be a valuable source of information. (One main question I had asked is, is the owner still living and do you have contact information for them, you want to know from the owner if there are any tax execptions that they qualify for that the county/state may have over looked). Then I went to the county court house and looked for any kind of environmental issues with the property (ground pollution, etc...), then I looked in the public records for any leins on the property. Usually a Tax lein is a superior lein so all others are null, but there are exceptions to every rule.
Thank you for your insight randable, it is most helpful. You're correct in assuming that I want to purchase tax deeds not liens.
Regarding "Research", I would have assumed that the owner wouldn't be very helpful to me since I would be purchasing his/her property (prolly under adverse conditions) am I wrong?
Well I like to look at this way. It can't hurt. If they are willing to talk then great. If not then your not out anything by trying. This also may alert them to what you are doing. Witch is good and bad. If they want the property that means a court date. If they don't then most likly they will let you know any problems with the property.
I am brand new at this also and wondering if anyone has experience with beach condos in Florida. I have a long list of properties with unpaid taxes, some have lapsed 3+ years. A tax sale was held 5/31 but unable to attend. There are still a number of these unpaid, so I'm assuming I could show up and pay them at any time. I'm mostly interested in collecting the 18% interest when taxes are paid, but if they are not, I'm unclear on when the tax deed would be available for sale. Also what happens to the mortgage when you end up with the property? Lots of unknowns still for me.
Thanks!
Quote:
On 2003-06-06 14:53, 4Real wrote:
Can you name some of the common mistakes/misconception a newbie makes when attempting a tax deed purchase in Alabama?
Hi 4Real,
Believing there is no redemption after they get the deed.
Good luck. There seems to be a bunch there.
Steve
Quote:
On 2003-06-06 07:59, randable wrote:
Stevesch, you are correct it is three years from date of the sale. However you are mistaken when it comes to the sell to who. It is three years from the date of the sale to the state.
Hi randable,
Not according to the Courts.
According to the Courts and the Attorney General, property seized by the State for taxes and sold to an individual is sold to that individual "subject to a three-year right of redemption regardless of the time the property was owned by the State".
I believe the link here has Court cases that have ruled the same way.
They also mention you have to hold the property adversely to the original owner for 3 years.
Congratulations on your deal. I wouldn't tell too many people where it is. They may go find the owner, have the owner redeem it and....well you know the rest.
What I'm saying is be careful, and good luck.
$.02
Steve
Office of the Attorney General
So your saying that there is still another three year waiting period... So all total there is a 6 year waiting period to purchase property from the state before you can take ownership?
One more thing how are you contacting these people? I would love to shoot some questions their way!
Quote:
On 2003-06-14 21:22, randable wrote:
So your saying that there is still another three year waiting period... So all total there is a 6 year waiting period to purchase property from the state before you can take ownership? <IMG SRC="images/forum/smilies/icon_confused.gif">
Hello,
I am not saying. The Courts said it. I just read the paper.
The Court said the redemption period, of three years, begins when the deed is transferred to a private buyer. As long as the State holds the deed, the owner may redeem.
Steve
Didn't mean to be rude. Was just asking... The pdf U had in the other post said that the time begins when the TITLE not deed passes out of the state. Does this mean that the state has to have the title? how do I find out who has the title? Thanks![ Edited by randable on Date 06/17/2003 ]
Hi randable,
You were not rude. I hope I wasn't either.
My understanding is that reguardless of when you get the deed, that's when the redemption period starts.
As long as the deed is held by the State, the original owner may redeem. When the deed passes from the State, the original owner has three years to redeem. That is assuming you hold it for three years adversely to the owner.
You will need to talk to a lawyer, or the County, and find out "how" they can redeem. If it takes a Court action, that would be a lot more expensive for the original owner than just going downtown and paying some money.
Steve[ Edited by SteveSch on Date 06/18/2003 ]
I completly understand. Keeping my fingers crossed. I am going to see a lawyer about the matter in two weeks. The impression I am getting from him is that I can force a title, if the owner does not contest. Witch I think owner in this case the owner is deceased. Thanks alot for your insight it has help me greatly! [ Edited by randable on Date 06/18/2003 ]
Here are some links from the Code of Alabama. VERY interesting read.
http://www.legislature.state.al.us/CodeofAlabama/1975/40-10-135.htm
http://www.legislature.state.al.us/CodeofAlabama/1975/40-10-134.htm
http://www.legislature.state.al.us/CodeofAlabama/1975/40-10-132.htm
http://www.legislature.state.al.us/CodeofAlabama/1975/40-10-133.htm
These, i hope mean what I think they mean.
Randable -
So how'd it go with the attorney? Did you get some straight answers about getting clear title?
I did. It will cost you about another $1000.00 to get a clear title to the property. You may be able to go to someone that does title work and have it done a little cheaper. But what the lawyer says is that there is research that needs to be done that will find out if there is any additional liens on the property after that is done (and there is a certain period of time that has to pass) then the lawyer can submit an application to the courts for a clear title. Hope this helps anyone that reads it!
Yes. In Alabama, there is a 3 years redemption period for the tax lien. At the end of the 3 years, youMUST take possession. Then the owner has another 3 years to redeem AFTER you take POSSESSION! So, indeed it is at least 6 years from the date of purchase of tax liens before you can get deed. And that is IF you and prove that you took possession on the property for 3 years without redemption! It is prohibitive to buy tax liens in Alabama, which is why few people do it there!!! Good luck!
RC
Thanks!!! That makes tons of sence.
Now, what happens if they put their house in a Land Trust? You cannot foreclose on a Trust, can you?[ Edited by samedwin on Date 02/07/2006 ]
I would go forward, just make sure that you make it clear in your offer to purchase/contract that taxes must be paid prior to closing.
I just purchased a property from a seller who had almost 70k in back taxes. My attorney and their attorney held all sale proceeds from the seller until the tax liens where paid.
What starts in May are the Tax Certificate sales. The deed sales occur weekly depending ont he county all year long.
For the Tax certificates, if the county has a working website for the County CLerk or Tax collector you will find the lists there. Otherwise, you will need to find out which paper they will advertise the delinquent taxes in. You will buy that paper and decide which certificates you want. The certificates go from 0 percent interest up to 18%. At the certificate sale you will bid for the amount of interest you would like to be paid. If your bid is accepted you will pay the delinquent taxes and the fee for the certificate paperwork from the clerk. You have to wait at least 2 years before you can ask for the property to be taken Tax Deed sale. You will need to register with the clerk beforehand.
The Tax Deed sale is when a certificate holder asks for the property to go to auction so they can collect their interest. For the listing of each counties sales you can go to the Clerk of Court website to see it or in some cases you have to call and request the list or buy the list.
You can also buy certificates that were not bidded on at previous certificate auctions from the Clerk.
contact me at masnovelas at hotmail and I will help. You can also read info on various county websites about the process.[ Edited by linlin on Date 02/10/2006 ]
Also some of the larger counties are going to online auctions and the lists will be there (usually with links to property info). Those lists are updated in the event a tax bill is paid before the cert auction.
Though living in TX I have invested in FL auctions (primarily Hillsborough County) and have done well.