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Updated almost 4 years ago on . Most recent reply

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126
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Tai Bhattad
  • Montgomery AL
23
Votes |
126
Posts

Alabama Tax Certificate prop sold at Foreclosure

Tai Bhattad
  • Montgomery AL
Posted

I purchased a tax certificate in ALABAMA that qualifies for a tax deed next year (2022) and the owner has been in bankruptcy court since 2020. I [was] listed as a creditor for the tax debt on one of his properties. The owner has several properties with & without a mortgage and as of April 2021, per his chapter 11 filing, the bank’s motion for relief was granted. A realty company called to redeem the prop  and asked me to sign an affidavit stating they just bought the prop at a foreclosure auction on Thursday and it was part of a bulk purchase at the auction. I checked probate and the property did not have an open loan but the realty co stated it did. According to the bankruptcy filing docs the prop was not listed with any other creditor but me, while the other properties were listed under their respective creditor (multiple banks). I don’t want this prop redeemed. Any experiences with this scenario with a win for the me as the  tax certificate holder? Or do I have to surrender the affidavit since it was bought at a foreclosure auction?  
**Also I asked his attorney to sell his redemption rights to the property at the first notice of the bankruptcy filing but I never received a response. 

Most Popular Reply

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23,418
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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
13,509
Votes |
23,418
Posts
Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

@Tai Bhattad You don’t have any rights to redeem in a foreclosure auction, if there Are redemption rights in a mtg foreclosure....you are not the owner. And if they Are the new owner, they have every right to redeem your tax certificate. 

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