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Brand New Tax Sale Redemption Opinion Issued TODAY

Posted by 15789465 on

I just received a copy of a brand new Alabama Supreme Court decision regarding tax sale redemption, and the perplexing problem of how the investor gets paid for his additional charges.  It's a pretty incredible decision! Stay tuned for an update. I know a lot of you don't read your emails over the weekend, but be sure to watch for my new posting, probably tomorrow evening. Thanks to attorney Cliff Mendheim, in Dothan, for sending the decision to me. Cliff is one of my major "go-to" people for all things related to tax sales. If you want to read the case yourself, before I analyze it, HERE it is.

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  • Hi Michael, you are entitled to immediate possession as soon as you receive the tax sale certificate. You do not have to wait three years until you get the deed. You are not entitled to the furniture, and you cannot safely assume it has been abandoned. The safest route is to file the ejectment action in Circuit Court and obtain a court order. The next safest thing (and far less expensive) is to try to contact the owner and have them remove their stuff, or give you permission (in writing) to give it away. But, you have to make sure that whoever gave you permission is the owner. What if the husband gave you permission but it all belongs to his soon-to-be-ex-wife, or even his wife? As a third alternative, you can put the stuff in storage and send the key to the owner. When you find furniture in what appears to be an abandoned house, be extremely cautious.

    Denise L. Evans on
  • my best instructions to a would be real estate mogul – you should consider my beloved home town of huntsville – here you can purchase abandoned dilapidated property at a huge discount and let it sell at the tax-sale – track down the individual purchaser or corporate purchaser owner/president then then turn in the property to the city of huntsville department of community development for code violations – they won’t bother you the title holder, but will cite the owner for criminal charges to force the tax-sale purchaser to bring the property to code (that’s why it’s so important to track down an individual – preferably in alabama – that you can forward to the city attorney to ensure someone will be in terrorum)

    waiting with baited breath on an opinion from someone with a legal background before weighing in with an opinion

    howie on
  • I’m not sure I understand what the Alabama Supreme Court decided but it appears to me they said the probate court has jurisdiction and they have no reason to believe the probate court will allow redemption until the tax lien purchaser has received all the money due him. I would think the fact they have been allowing redemption with only the past due taxes plus interest would be reason enough.

    It appears to me I would make more money by buying property that is falling apart, not pay the taxes on it, wait till someone buys it and does all the necessary repairs, then redeem it and sell it.

    Kimberley Porter on
  • i ain’t a lawyer so you need to see one or take the following as my personal take on the general situation

    the only expense that the purchaser is entitled to is the premiums paid for hazard insurance (not liability?) the purchaser is also entitled to the value of preservation improvements (not the cost)

    pursuant to 40-10-74 after receiving a tax sale certificate (or a deed from the state?) the tax-sale purchaser can demand possession of the premises and file for ejectment after waiting 6 months – i would assume that the ejectment action could include a demand for mesne profits (rent collected since the demand was made)

    if it’s a matter of someone bad mouthing your claim to the possession to make it difficult for you to rent out the property, there is a remedy of slander of title, which is tough to prove and win (especially since the owner is considered to have title the first 3 years) – and you must show pecunary damages (actual monetary lossses), but please let me know if you are successful because i would love to know how to successfully sue the sobs

    howie on
  • I have a question. Is a tax DEED purchaser entitled to other any other expenses or is he/she only entitled to those stated? Also the Alabama code says the tax lien/deed purchaser is entitled to collect the rents on the property. In cases where the renter and “proposed redemptioner” conspire to prevent this, is the purchaser entitled to rents accumulated during the time he/she holds the deed?

    Kimberley Porter on

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