Alabama Tax Sale Redemption Time Periods

Alabama has five different redemption time periods after a tax sale.

• For the first three years after a tax auction, the taxpayer has "administrative redemption" rights. Redemption is accomplished by application to an administrative official with the county where the property is located
  
• If there are no bidders and the property is sold the state, the taxpayer can redeem at any time before the property is sold to a 3rd party, or the three-year administrative period, whichever is longer. This is accomplished by application to an administrative official with the county where the property is located. 
  
• If the property is vacant or abandoned, or if the taxpayer is still in possession, the taxpayer has three years after the investor takes possession within which to redeem. Typically the investor does not take possession until it has a tax deed, although it is legally allowed to take possession earlier. This type of redemption is done via negotiations directly with the investor. It is called judicial redemption because its earliest roots arose out of an ejectment lawsuit by the investor against the taxpayer. A lawsuit is no longer required, though.
  
• All lien holders (mortgages, IRS, judgment liens, etc.) have the original 3 year administrative redemption, plus they have one year after receipt of a certified letter from the investor, whichever is longer. The letter must provide information about the tax sale, and contact information for the investor.  If the investor does not know about the need to send the letter, and it is never sent, then the lien holder redemption rights could extend as long as 20 years after the tax sale.
  
• If the tax sale was void because of defects in the way it was advertised or conducted, the taxpayer has the right to declare it void and regain the property.  This is not technically a redemption, although the courts often talk about it in those terms. The taxpayer's rights are forfeited, however, if the investor takes and holds continuous possession of the property for a three year period after the tax deed date. The tax deed date is three years after the tax sale. This is a matter of adverse possession, and is called the Short Statute of Limitations.