Alabama Tax Sale: Price Quote Counteroffer Scenario

[Tai Bhattad]

I’m looking for advice /guidance on countering a price quote I received for a Tax Deed in Mobile, AL to gain ownership of a vacant lot.

Scenario (real): price quote came in for $3000 on a tax deed for a vacant lot where the property went tax delinquent in 1999. The county assessed value is only $2400.

The structure was demo’d by the city years ago (don’t know exact date) but I called the city and they confirmed the Municiple liens: Bldg, all weed liens, etc over the years were included in the price quote sent to the state.

The state has a backlog on reviewing counter offers and said it could take a year to even look at a counter offer... She also was very short with me when I tried to get information about how this will impact my place in line for the price quote I already received... so [I’m] stuck with no info there.

1. Anyone know of a contact at the Alabama state Revenue office to expedite the review of a counteroffer on a price quote?

2. What is a decent counter amount that you see might make sense? . (10 yr old tax deed -technically 7yrs) and structure is gone with very mature trees that I have to remove to build on it. Lot size is .16 acres, assessed at $2400 with surrounding lots of larger size assessed lower (not by much though :))

3. My thought: submit a counteroffer and go ahead and pay the initial $3k price quote upfront and hound them for the difference if it’s eventually reviewed and accepted. Wishful thinking but hey I don’t know how this stuff works; hence anyone ever pulled this off pls let me know.

3a. This gives me time to start the ownership steps and improvements as I want to have the trees removed and a slab down (with electricity) by Feb 2020. Other construction plans are down the line.

Also this lot is on the city’s NRP eligible list meaning they want someone to buy & build on the lot as part of their neighborhood renewal program!! (If it gets approved then the city helps you quiet title... expedited.)

I don’t want to wait for it to get on the NRP approval list as there’s no telling all the layers and other folks I may have to go through.

The owner lives about 8 blocks from the lot and I have not assumed abandonment since I think they may use it for parking fees during a certain time of the yr... if I get the tax deed: I’m ready to give notice and proceed with ejectment but I want to call them first about this.

Should I call first or just keep it formally in writing only? I think someone in my oversized family may know the owners but I have not spot checked :)

End goal is to gift the project to mommy to host her family functions :)

Guidance on this deal is appreciated!

[Denise Evans]

@Bryan Hartlen, there are many "soft issues" regarding expiration of redemption periods in Alabama. They turn on factual issues regarding whether the investor took LAWFUL possession and whether it was in exclusive and continuous possession of the property. There are also some gray areas regarding the law. As a result, no title company in Alabama will insure title after a tax auction unless there has been a quiet title order. In addition, the underwriter will order up the court file for the quiet title lawsuit and make sure there were no procedural defects that would have deprived the court of jurisdiction. If it was without jurisdiction, then the quiet title order is worthless.