My good friend Brian Trippe, of REI Live, has graciously made available, modules of a “Tax Sale Basics” seminar that we put together back in April of this year.  The seminar consists of a total of six modules.  This is a great place to get an introduction to the tax lien/tax certificate/tax deed business in Alabama.  This seminar concentrates primarily on getting someone prepared to successfully participate in a local tax sale.

MODULE 1

MODULE 2

MODULE 3

MODULE 4

MODULE 5

MODULE 6

My sources tell me that Alabama SB257 was signed into law by the Governor today.  It reduces the interest rate paid on the redemption of properties from tax sale from 12 percent to 8 percent.  You can read the act HERE.

As of May 19, 2016, the Alabama Department of Revenue will no longer allow me (or anyone else) to change the name on an assignment purchased from them.

That means the State will not allow anyone to apply for a parcel in one name, then actually purchase it in another name.

There is a contractual solution to this between the non-State parties.  I will plan to update this later.

UPDATED July 15, 2016 *************************************************

This means two things:

1.  Because of this added complication, we will no longer be able to market “price quotes” that are owned by third parties.
2.  We intend to continue to market “price quotes” that we own by utilizing the following contractual statement that will be on all our invoices going forward:

“NOTICE:  As of 5/19/2016, the State Department of Revenue will no longer allow the application for property in one name and the execution of the purchase transaction in another name.  This property will be purchased from the State in the name of the applying entity (either Dominion Legacy Inc or Dominion Resources LLC).  Once we receive the certificate from the State, we will execute an assignment (affidavit) of the property to the entity of your choice.  Your payment of this invoice acknowledges your understanding and acceptance of this policy.”

A reader has asked a good question:  “Generally how long does quiet title process take in the State of Alabama?”

My answer:  As most of you know I am not an attorney but I have observed a few “quiet title actions” up close.  My layman’s opinion is that several factors can effect how long it takes to get a quiet title order.  I am speaking of the process as it relates to tax deed properties only.

1. Is your attorney knowledgeable and reasonably aggressive regarding a quiet title action on tax deed property?  Be sure to choose the right attorney.
2. Have you complied with the statutory provision of adversely possessing your tax deed property for at least 3 years?  If not, you may get not get to “first base” legally.
3. What does the title look like?  Are there lots of other liens, mortgages, judgments, heirs, etc.?  The more players–the longer the timeline.
4. How accessible are the parties in #2 above?  Are they alive, local, cooperative, responsive——these factors will determine how soon legal notice can be served.  If you have to revert to advertising, that can add time (and costs) to the process.
5. How “backed up” is the circuit court system in your jurisdiction?  In more populous counties, it can generally take longer to schedule a hearing than in the more rural counties.

I have not known of one to take less than 3 months and I had one that lasted over 2 years.

I am sure that some of our attorney friends could provide additional information but these are factors that I have observed based on the few quiet title processes that I have witnessed.

More and more I am running across folks that for various reasons want to liquidate a tax certificate or tax deed.  We are glad to help you do that.  Call or e-mail to discuss your specific situation.  205-281-1587 or [email protected].

I received the following question from a reader today:

“I’m new to the lien and deed investment game. I have applied for many properties in Jefferson county and now am waiting for a response. How long do we generally have to wait to hear back from the State about a deed/lien? I know they say 2-3 months but I want to know what others have experienced.”

That is a very relevant question.  Based on my experience, there are at least two key factors that determine how soon you might receive a reply from the State after you have applied for a tax certificate or tax deed:

1. Calendar Cycle – The time of year in which you apply can be a factor.  I have observed a “slow down” around the typical business slow periods—such as around the holidays at the end of the year.  Another “dead time” would be in the September to October time frame. Property taxes for the next tax year become due on October 1st.  Typically the State would not want to send out a quote in September that did not include the next year’s tax.  Many times they are waiting for the particular county to send them that information—so sometimes the county is the reason for the slow down.  October can be slow for the same reasons and also because of the backlog created in September.
2. Demand – The State receives applications on a “first come, first served” basis.  So if you have applied for a property and there are 15 applicants “in line” ahead of you.  It may be a very long time before you hear anything from the State.  Remember, each applicant has a 20-day “option” period.  If 15 people take the full 20-day period, you are looking at possibly 10 months before you have a chance at it—and that doesn’t take into consideration any lag time between applications.

The office that handles these has I think four employees.  They processes THOUSANDS of applications every year.  I have found them to be remarkably efficient considering the number of items they handle.

Denise Evans has recently produced a very informative video on the subject of taking possession of tax certificate properties.  There is very little information available about how to do this effectively.  Denise is very thorough and I find her information to be very reliable.  Download her free video HERE.  (UPDATED 1/19/2016–The video was free at the time of this original post.  Apparently she is now charging $7.99 for the 18 minute video.)

If you are an Alabama tax certificate investor, and you have had any county redemptions in the past year or so, you have probably received a “REDEMPTION AFFIDAVIT” which you have to fill out, sign, have notarized and return to the appropriate party.

If this is a nuisance to you, consider letting Alabama Tax Properties handle this process for you.  THERE IS NO CHARGE TO YOU.

E-mail if you have interest: [email protected]

Have you ever been reluctant to pursue a tax lien or tax deed because you knew there were other outstanding liens?

This very informative article by Denise Evans regarding where liens appear in the “pecking order”, will help you sort through the issue.