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News for Real Estate Investors and Landlords — Tax Sales

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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Cutting Timber from Tax Sale Property

Posted by Denise Evans on

My theory that you can cut timber from property after you receive a tax deed is just my theory. I KNOW the statute says that if you cut the timber before the tax deed, a redeeming owner gets a credit for that. I'm fairly certain that once you have a tax deed, you are the owner of the property for all purposes--except that somebody can take it away from you through extended redemption rights.  I'm fairly certain from law school classes that once you sign a contract to sell timber, you sever it from the real estate and convert it...

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Alabama Distressed Property Investors Association

Posted by 15789465 on

I am pleased to announce the launch of the Alabama Distressed Property Investors Association.  It will include resources for investors in Alabama tax sales, foreclosures, and sheriff's auctions, plus tax sale opportunities in near-by states, bankruptcy auctions, and IRS auctions. This blog will be moved to a members-only site, and will be expanded to a weekly format that will include advice, property leads, short videos from experts in various fields, a wants/needs exchange for properties and partnering, and legislation reports from our lobbyist. Members receive a 10% discount on all Butler Evans products and classes related to distressed property investing (including...

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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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