I just have a quick question. I have tried looking all over the internet and can’t seem to find the answer. Anyhow, I live in Mobile, AL and I am looking into getting into investing in tax sales. My question is if a tax lien was sold to the state over 3 years ago, which is the redemption period here, if I were to purchase said lien would I automatically be able to get a tax deed or do I have to wait 3 years from the date it would be purchased by me?
Also if there is a mortgage on the property will it be gone once I get a marketable title after the tax lien redemption period is over?
Hi,
Tax liens are sold by the counties to bidders who attend tax sale auctions or tax certificate auctions!
If you are buying from a private party or from the state if there were no bidders the first thing that occurs at the end of 3 years is the certificate holder must:
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Go back to the county the certificate was purchased in and pay all past due taxes on the property for the past 3 years! (Unpaid Utility bills will probable still be attached to the property)
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Take action through an attorney for quiet title action to gain legal ownership (I was trying to research this and I am not clear as to whether you immediately gain ownership or your tax lien becomes a property lien and you foreclose) to the property as the lienholder (Owner)
Then action through your attorney to gain possession of the property!
If foreclosure is necessary there is a 1 year redemption period for foreclosures under Alabama Law!
GR
Tax deed is the priority lien so it wipes out all mortgages and liens against the property. Say for example if the property owner owes the bank of certain amount and the property goes to a tax deed auction because they did not pay their taxes you as the winning bidder will end up owning the house clear of mortgage.
Also there is an over the counter deed. This is when not all the houses or properties sell at the tax deed sale all you need to do is walk into the county office and buy the houses.