Alabama Tax Liens and Possession

[Denise Evans]

There has been some confusion on this point, and emails to me with questions.

If you have an Alabama tax lien you purchased through Govease.com (or you bought it from somebody who bought it through GovEase.com) you are NOT entitled possession. This is what we call "the new system."  You cannot cut locks, you cannot take possession, you cannot set foot on the property, you cannot make any improvements. There are some VERY specialized strategies that can get around the problem, but they require buying out the former owner or one of the heirs.  A few counties have in-person tax lien auctions, not through GovEase.com, but it is the same rules.

Alabama tax lien investors can only accumulate the correct number of tax liens for the correct number of years and then file a lien foreclosure lawsuit. If nobody redeems during that lawsuit, and nobody with redemption rights demands a public auction, then the judge will foreclose your liens, quiet title in you, order the clerk of the court to issue a deed to you, and you will own the property, free and clear of any liens or claims. At that point, and not one minute before, you can do anything you want. Well, technically, you have to wait until the order is final and non-appealable, 42 days after the judge's order.

The "older system" (still used by some counties) is the one that allows possession. Please make sure you know what you own, and what your rights are. If you have a tax lien and take possession, you can be arrested and you can be sued for actual and punitive damages for trespass.