Mc Calla, AL · Member since 2017 · 42 posts · 8 votes
I am fairly new to BP and the more I read and research the more questions I have. My next question is... I downloaded the transcript of tax delinquent land available for sale in Jefferson county Alabama and found several properties listed that from my research the person listed on the county tax records is deceased. Could these properties be voided sales if I purchase them? What road blocks could I possibly run into if I proceed with sending the monies to the state of Alabama? Is it possible to not be able to recover the initial money you invest into buying a tax lien from the state?
Thanks for all the great information you guys provide.
Investor · Birmingham, AL · Member since 2016 · 446 posts · 305 votes
9y
<------Not an expert, not legal advice, @Denise Evans is the expert.
From what I understand, you would have to find out if the owner died before or after the tax sale. If it was before the tax sale can be voided, if after it still stands but the heirs still have redemption rights.
I ran into this before . Just so happens one of the surviving heirs was my next door neighbor. From what I was told that if I wanted the house I could purchase the lien but then I would need to open probate, have the courts establish her step children as heirs, and get them to quit claim the deed to me. I would not consider this to be too much trouble if the property was considered a high value asset and there was only one or two agreeable heirs. In my case it was more than 10+ and there was no way I was gonna track down all those people for a house in the hood.
I think (but am totally unsure) that a voided tax sale can be challenged if you are in possession for 3 years. Again I am not sure about that.
If you purchase one and the heirs redeem you would receive the money back that you paid for the lien but not for repairs (not 100% sure on that last part).
How many years has the house been in tax sale? If it was 5 or more & in Birmingham you could see about going through the Landbank. Many end up in the Landbank because of this situation (dead owners, no/missing heirs) and the city lawyers handles everything to quiet the title.
Mc Calla, AL · Member since 2017 · 42 posts · 8 votes
9y
Thanks for the information Anastasia.
In my case the properties are vacant lots or undeveloped land tracts. I look for land that I wouldn't mind keeping if it isn't redeemed or if it is I still get the 12% interest on my money. I am new to this and don't want to lose my initial investment. My main concern is making an error and not being able to at least get my money back. I won't be putting any money into the property other than buying the lien and keeping the property taxes current.
Investor · Birmingham, AL · Member since 2016 · 446 posts · 305 votes
9y
Well if it is vacant land you can't do anything development wise to it anyway......besides planting a garden, lol. If redeemed by the heirs they will have to pay you for the lien + 12%.
Will you try to search the probate court records or google to track down the heirs?
Mc Calla, AL · Member since 2017 · 42 posts · 8 votes
9y
Probably not since I am new to the tax lien process. I would like to find something easy to cut my teeth on. At this point I am still trying to learn the ropes. I am doing a lot of research and asking questions. I have consulted several local attorneys about the tax lien process to get a feel for what steps need to be taken and they all say "Well, Its a very complex process". None have be encouraging or very helpful.