Update on Tax Certificate

Tamika Rue · 2019-11-25T10:41:19-08:00

Hello everyone, back in May I got my first lien certificate. By me being to anxious I purchased one that was already occupied. Huge mistake on my end. I then learned that with a tax certificate I couldn't evict right away. I had to wait 6 months. Since then, I've talked to the owner a few times. Each with him saying he was going to pay me my money and redeem. I signed the paper work and everything to hurry and get my money that I spent on the certificate. At that point I wanted out asap. It had been 6 months and he still hasn't redeemed on the property. I was told back in May to go ahead and put a notice to vacate on the door and take a picture. I did that. So I'm going to try to give the owner another call and if he doesn't redeem within the next couple days I'm going to go to the tenant and explain what's going on. I'm not sure if they have a lease agreement or not but if they don't I will let them know that I'm going to start charging rent and I have the right to evict. If they choose not to pay rent I'm gonna go ahead with the eviction process. From there, I want to make any repairs necessary and either stay in it or rent it out. Hopefully it'll up the price and the owner won't be able to afford to redeem. Not to mention it's that time of year to pay taxes. So that is more money they'll have to pay me back. Any advice at all is appreciated. This is my first property and I'm hoping to have a positive outcome. Whether I get my money back or get to keep the property, I'm okay with that.

Tamika Rue

OP

Member since 2018 · 57 posts · 3 votes

6y

Btw I'm in Alabama

0 Reply

Jamie O'Brien

Flipper/Rehabber · Birmingham, AL · Member since 2016 · 74 posts · 58 votes

6y

@Tamika Rue - is highly suggest you talk to an attorney or at minimum look up some of Denise Evans posts on BP. You are incorrect on almost all of what you think you know and may be setting yourself up for a lawsuit. There is a lot to unpack from your post, however key points are below.

-Do not talk to the tenant if it is not the owner

- If you have a tax certificate then you can not evict, you can file an ejectment lawsuit. These are different.

- If you are trying to take possession and have talked to the owner of the property, get them to sign a lease with you, even for a $1 a month. This gives you legal possession.

- You cannot legal access the property and perform repairs or rehab u less if it abandoned. And abandoned does not mean vacant.

I strongly encourage you to study this a little more. I am not an expert, but Denise Evans has posted tons of great material on this site that you can look up.

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Denise Evans

JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes

6y

@Tamika Rue, @Jamie O'Brien, I love being THE expert on Alabama tax sales, but Jamie has NAILED IT!!! His advice is spot-on. It's a happy/sad day when the "children" grow up and don't need "parental" advice!

The only additional thing I can add is to send what I call the "scary notice to vacate" letter. That is a letter written by an attorney or sounding like it has been written by an attorney. Send it by regular and certified mail. If an attorney does not write it, show a cc to a lawyer. If you are not used to writing business letters, that goes a couple of lines below your signature, as in the example below:

"...blah blah blah letter stuff.

Tamika Rue

cc: Joe Jones, Attorney at Law"

In your case, the letter should recite the date of the sale, the date of your prior notice to vacate, and that an ejectment lawsuit will be filed on whatever date is six months after your first notice. Mention that by law the lawsuit must be against the tenant and the owner (which is true, even though you should not contact the tenant before that time), could possibly mess up both of their credit scores, the tenant will almost certainly sue the landlord for damages for that happening, AND the law says the cost of redemption will increase by the legal fees and court costs necessary because of the ejectment lawsuit.

That usually gets people down to the courthouse right away to redeem.

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Tamika Rue

OP

Member since 2018 · 57 posts · 3 votes

6y

@James O'Brien thanks alot. It's been about 6 months since I've looked into this sitaution so a lot of things I forgot. Thank you. Denise Evans is great. I always post hoping that she see's and can give her expertise.

@Denise Evans so if I file ejectment and it goes through, will I not be able to go in and start making repairs on the property? I would've loved to get my money back a few months ago but since he hasn't redeemed I'm going to see if I can try to keep it. He has already stated that he isn't in a good position as far as money goes. 6 months ago i made a post in reference to this situation and you told me to go ahead and put a notice to vacate on their door and take a picture. I did that, so will that have to be done again?

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Tamika Rue

OP

Member since 2018 · 57 posts · 3 votes

6y

This is exactly why I don't make any moves until I hear from the tax expert!

1 Reply

Denise Evans

JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes

6y

@Tamika Rue, you must file your ejectment lawsuit, get your ejectment order (31 days after service of the lawsuit papers, if there is no answer) and then wait 42 days after the order until it is final and non-appealable. If there is a tenant, you can tell the tenant you are the new landlord. If it is a situation where an owner is in possession, you will have to get a turnout order, similar to an eviction. Then the sheriff's department or police will stand outside and keep the peace while your movers put everything out on the street. With a tax sale ejectment, it never gets that far. They almost always either move out voluntarily or redeem.

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Update on Tax Certificate

6 Replies