Searching for a solution on Tax Deed purchase/ rehab/ cash out refinance

[Edwin Bethune]

I'm looking to purchase a tax deed property in my state of alabama. The road block that's got me is after I've used a hard money loan for the purchase and rehab of a tax deed property, how will I get from under the hard money loan? Normally, you could cash out refinance but I don't see any credit union (CU) approving financing on an uninsurable title. I'm thinking I'll have to wait until I do the Quiet title lawsuit/get a clear and (an insurable title) title insurance. But then again how would I pay back the initial hard money loan in the mean time.

Note: Alabama has a 3 year redemption period, so, the Quiet Title lawsuit can't take place until after the 3 years of me acquiring the deed.

My goal is to 1 not be stuck with the hard money loan. Any advice would be appreciated

[Denise Evans]

I posted a video that explains about Alabama redemption time periods. Not as clear cut as 3 years after tax deed. Watch the video.  I would not loan hard money against a tax deed, much less borrow money for an expensive rehab. There are about a dozen different ways things can go bad. The investor can probably control most of them, but the lender has no such close-quarters notice and ability to respond.

Get quitclaim deeds from the owner, or as many of the heirs as you can if there are heirs. That is the best way to protect yourself. Even if you don't get from all of the heirs, that at least makes you a co-owner and bootstraps into a lot of other rights and protections.