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Updated about 5 years ago, 10/02/2019

User Stats

34
Posts
2
Votes
Devon Daniels
  • Dothan, AL
2
Votes |
34
Posts

Advice on Tax Sale remodel / rental in Alabama

Devon Daniels
  • Dothan, AL
Posted

I won a home during the 2019 tax sale in AL. The house was pretty run-down and I have completed the reno. The previous owner occupant contacted me asking to rent it after it was finished. I am obviously leery about allowing that to happen being that 1. They allowed their family home to become run down and 2. If I allow them to rent it and they refuse to pay rent, the legal quagmire that would ensue. Would you ask they sign a quitclaim before they rent or offer some kind of deal?

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4,890
Posts
4,263
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Bruce Lynn#2 Real Estate Agent Contributor
  • Real Estate Broker
  • Coppell, TX
4,263
Votes |
4,890
Posts
Bruce Lynn#2 Real Estate Agent Contributor
  • Real Estate Broker
  • Coppell, TX
Replied

I would not think this is a good idea.   If they can't pay the taxes, how are they going to pay rent.

User Stats

425
Posts
391
Votes
Clint Shelley
Pro Member
  • Surveyor
  • Dothan, AL
391
Votes |
425
Posts
Clint Shelley
Pro Member
  • Surveyor
  • Dothan, AL
Replied

Absolutely not.

Clint

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    User Stats

    1,556
    Posts
    1,454
    Votes
    Denise Evans
    • JD, CCIM , Real Estate Broker
    • Tuscaloosa, AL
    1,454
    Votes |
    1,556
    Posts
    Denise Evans
    • JD, CCIM , Real Estate Broker
    • Tuscaloosa, AL
    Replied

    If they'll quitclaim it to you, that's worth taking the risk. Be sure to get a title commitment first and see if there are any liens against the property.  If you take a quitclaim when all you have is a tax certificate, the liens all re-attach to the property. If you take a quitclaim after you have a tax deed, the liens stay off (assuming you've sent your redemption notices) and the title stays "laundered."

    User Stats

    34
    Posts
    2
    Votes
    Devon Daniels
    • Dothan, AL
    2
    Votes |
    34
    Posts
    Devon Daniels
    • Dothan, AL
    Replied

    Thank you all. I'll update with the results.

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    Chris Seveney
    Lender
    Pro Member
    • Investor
    • Virginia
    14,507
    Votes |
    16,976
    Posts
    Chris Seveney
    Lender
    Pro Member
    • Investor
    • Virginia
    ModeratorReplied

    @Devon Daniels

    Based on how they took care of the property I would say no

    • Chris Seveney
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    7e investments
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    User Stats

    34
    Posts
    2
    Votes
    Devon Daniels
    • Dothan, AL
    2
    Votes |
    34
    Posts
    Devon Daniels
    • Dothan, AL
    Replied

    I didnt rent to the prior owner. Thanks for your help.