alabama property Tax sale

[Kevin DuBose]

Hello everyone,

I have a few questions and wanted to get your option. I'm looking at buying a tax lien on a commercial property that has a lot of old equipment and old materials in the building. I did a little research and found that the property has a state and IRS lien. My understanding is that I should not sell or trash any of the equipment or materials until I have the tax deed. Is this correct? Or will I be okay to sell the equipment and start using the space for my business? How often do the state and IRS act on their redemption rights? Also, is there anything else I should be aware of that I'm not thinking about?

Thank you for all your help,

Kevin

[Denise Evans]

@Kevin DuBose, if the property is in Alabama, it might still be subject to redemption rights even after your tax deed.  

You should file an ejectment lawsuit and get a court order that will require the owner to remove his stuff. If he does not, you can trash it out.  

IRS liens usually have expiration dates on them.  

You should be careful about making any repairs, because you will not be compensated for them on a commercial property and an Alabama tax sale. 

If the IRS liens are still active, the former owner will most likely not redeem, because then he will just have those IRS liens to deal with. YOU, on the other hand, have only a property that can be redeemed by the IRS. 

You must send certified letters to all lienholders in existence on the date of the tax auction (even if they are now expired liens) advising of the tax auction and your contact info. That's all you have to say. They have one year from receipt of your letter to redeem. If they do not redeem, they lose all redemption rights, and have no lien rights.  

With all of that being said, the former owner will probably quitclaim and release his rights to you for very little money.