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News for Real Estate Investors and Landlords — redemption

Redemption Rules

Posted by Denise Evans on

This advice applies to foreclosure redemption and tax sale redemption. The redemption process usually starts with a written demand for lawful charges. It does not have to be any particular form. It does not have to be certified mail. It can be an email.  The November 6, 2015 decision in Wall to Wall Properties v. Cadence Bank (Alabama Court of Civil Appeals, by assignment from the Alabama Supreme Court) held that a motion placed on the AlaFile online system for lawsuits, and then transmitted via email by the system, met the requirement of a "writing."  For you tax sale investors,...

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Lawn Care as Redemption Expense

Posted by Denise Evans on

You buy a tax sale or foreclosure property. The lawn is a jungle, or maybe everything is dead.  Either way, you restore it to something attractive, and then maintain it with twice-monthly mowing, plus other landscaping maintenance as needed. Can you recover this expense if the owner redeems? Yes!  Certainly "yes" after a foreclosure, but I think also "yes" after a tax sale. My answer is based on the case of Godfrey v. Black, 240 Ala. 151, 197 So. 892 (1940) which was a foreclosure redemption case. After a foreclosure, the redeeming party must pay, in addition to other charges, the...

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Contested Redemptions

Posted by Denise Evans on

What actions must done in writing when there is a contested redemption after an Alabama foreclosure or tax sale? After a mortgage foreclosure, a redeeming party must also pay the value of all permanent improvements added after the foreclosure and before redemption.  After a tax sale of a property that contains a residential structure, a redeeming party must also pay the value of all preservation improvements performed after the tax sale and before redemption. The following rules apply to either type of redemption. Writing required:  The redeeming party must make a written demand on the investor for the value of...

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Lienholder Notices of Tax Sale

Posted by Denise Evans on

I've given you some bad advice. The correct advice is in my book and classes, but I posted the wrong thing on this blog. It is related to notices to lienholders.  The notice MUST be sent via certified mail, return receipt requested (CMRRR).  I apologize for being so flippant in this blog about the cat letter.  Section 40-10-74, which is part of the chapter concerning rights of tax sale purchasers, says you must send CMRRR notice to the lienholder. Section 40-10-120, which is part of the chapter concerning redemption, says you just have to send notice.  That's confusing. When one...

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We Avoided Disaster-SB362 is DEAD

Posted by 15789465 on

Gary Boyd, of Alabama Tax Properties, has an excellent recap of the life and death of SB362, which would have been deadly for tax sale investors if passed. We need to be vigilant, though, because Senator Pittman will try this again. Read Gary's article, HERE

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