Tax Lien Rights

[Grant Jordan Ward]

Hi everyone im new to tax lien investing and had a question about a lien i purchased this year. I purchased about 2 acres of land in Winston County Al I went and looked at the property and its all completely wooded, but my question is could i go ahead and start clearing the timber off of it or should i wait until the redemption period is over with first? Ive heard both from numerous different people but would like an opinion from someone more experienced, thanks!

[Denise Evans]

If you in fact purchased a tax lien under the new system (people bid down the interest rate) then you are not allowed to set foot on the property and you certainly cannot cut the timber until after a judge forecloses your liens, quiets title, and orders the clerk to issue a deed to you. That is, at a minimum, 4 years in the future.  You must file the lawsuit and then you must obtain the order.

If you purchased a tax certificate under the old system (people bid up the purchase price) you are not allowed to cut the timber while you have only a tax certificate, which is the time period up to three years after the auction. There is no appellate or statutory authority that allows to you cut the timber after the tax deed date, but while judicial redemption rights might still be outstanding. I personally think you can, and if the former owner redeems, they get cutover timber land. But, a court could rule differently.