Posted by 15789465 on Apr 20, 2015
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Will have to check the date to be sure, but yes, there was a sheriff’s sale. Why would the owner still have redemption rights 5 yrs after tax sale? the property is vacant.
If the owner has remained in possession, or if the property is vacant, the owner STILL has redemption rights. This is confusing to many people who are new to this area. I recommend you buy my book on Alabama Tax Sale Investing, which is a very thorough education on the whole field, and explains the various redemption rights, and how you protect yourself.
Was the judgment recorded before or after the tax sale? Was there ever a sheriff’s sale executing on the judgment? If the mortgage was satisfied, the lender has no redemption rights. The judgment creditor might, depending on whether it was RECORDED (not the date of the judgment, but the date it was recorded) before the tax sale or afterwards. Also, make sure it was a Certificate of Judgment that was recorded, not just a copy of the judgment. I’ve run into this issue with some surprising large and reputable law firms who represented creditors. They would sue, take a judgment, and then record a copy of the judgment in the real estate records. Legally, that is NOT a lien on the property. Only the Certificate of Judgment, that contains the information required by the statute, is a lien on the real estate.
First timer here: I am about to purchase a property from the state that was sold 5 yrs ago, so right of redemption has long passed. However, upon searching court records, there is a Satisfaction of Mortgage letter dated 2002 and a judgement against the homeowner in 2010. I wasn’t sure if the judgment had anything to do with the house since a Satisfaction of Mortgage was recorded. If there is a lien or mortgage what rights do the bank have after 5 yrs?
Howie, I don’t know the cite off the top of my head. I’m sorry. While I’m always happy to answer questions on this blog, things like cites to laws and complete analyses might be better obtained from my book, the 2015 edition of Alabama Tax Sale Investing, available for purchase HERE.
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