All Forum Posts by: Denise Evans

Were the late payments far enough in the past that they indicated a temporary problem that is now resolved, or are they recent and indicate a deteriorating financial condition?

@Shari Bertsch, I do not know if he operates in TN or not.  If he does  not, he probably can refer you to someone.

@Sandy Nguyen, he is in California. In Alabama, the rules are

If the property contains a residential structure, the investor can make "preservation improvements" and recover the VALUE of them from the taxpayer if the taxpayer redeems. If the investor spends $5 plus 2 weeks of sweat equity, and increases the value of the property by $10,000, then the redeeming taxpayer will have to pay an additional $10,000 to redeem.  Preservation improvements includes rapairs to make a property habitable and routine maintenance such as lawn care. The value of lawn care is generally the same as the cost.

If the property is located in an urban renewal or urban redevelopment district, then it does not matter what type of property it is. The investor can recover, as additional redemption charges, the value of all "permanent improvements." This includes capital improvements such as additions, upgrades, or building new structures. It also includes simple repairs.

Thanks, @Arnie Abramson, for asking that clarifying question.  Of course that makes a difference. Contact me via pm, if you don't mind. My law license is in Texas, (even though I now live in Alabama) and I've been looking to get into some deals there.

Thanks @Joe Mclain for the thumbs up!

If the property is occupied, you must file an ejectment lawsuit, not eviction. If you have only a tax certificate, you must give written notice to vacate and then wait 6 months before you can file the suit. If you have a tax deed, you can file immediately.  The taxpayer does not have 3 years from the tax deed to redeem. They have 3  years from when the investor takes possession, which typically happens when the tax deed is issued, but does not have to happen that way.

Often, the taxpayer will counterclaim in the ejectment lawsuit, and ask the judge to set the redemption amount so they can redeem. As long as the investor sues for ejectment first, then the redemption charges will also include the investor's legal fees.

If you can talk the taxpayer into signing a lease, even if only $1 a month, then their possession is UNDER your possession. In other words, YOU are legally in possession.  Just make sure the lease puts all maintenance and repair responsibilities on the tenant. Get insurance to protect yourself, especially against liability. Often, the years pass and people can't scrape together the money to redeem, and you'll end up with it anyway.

Or, you might want to finance the redemption, but they will have to quitclaim their rights to you, with a contract that you will quitclaim the property back to them when they've completed all the payments.

I forgot to expand on my prior answer. If the owner is in possession under a lease from you, that is the same as you being in possession. This shortens the redemption time period to just the 3-year administrative redemption.

Hi Danita, I'm sorry about this experience. The probate office told you incomplete information.  You are entitled to possession as soon as you get your tax certificate. In case anybody argues with you, the statute is Section 40-10-74, which says: 

"Any purchaser of lands at a tax sale other than the state or anyone claiming under him shall be entitled to possession of said lands immediately upon receipt of certificate of sale from the tax collector; and, if possession is not surrendered within six months after demand therefor is made by said purchaser or his assignee, the said purchaser or his assignee may maintain an action in ejectment or a statutory real action in the nature of ejectment, or other proper remedy for the recovery of the possession of the lands purchased at such sales and shall be entitled to hold the possession thereof on recovery,"

You cannot just throw people out on the street.  If the property appears to be abandoned, you can go in and take possession, change the locks, etc. If not, then you have to give the notice and then file the ejectment lawsuit. The best way to take possession and not make waves is to show the taxpayer your tax certificate, and ask them to sign a lease with you until they are able to redeem. Make the rent only $5 a month or something. Tell them your lawyer/accountant/husband (whatever) says you have to do it that way for legal reasons, otherwise you have to sue them to kick them off the property, and they will owe your legal fees on top of the redemption charges.

Alabaster is a good solid area with long term middle class growth and stability. It is a bedroom community for Birmingham, plus local jobs in retail, fast food, lodging and health care. As a result there is not any single employer that could shut down and endanger property values or rents. There are no nearby problems--like industry or lime pits--to cause pollution. The large retail area on I-65 at exit 238, brings in a huge amount of sales tax dollars, drawing customers from surrounding counties. Roads, police, and fire departments are all excellent. Until 20 years ago, Alabaster was largely a rural community. As a result there are no true blighted areas of town, because there just isn't anything that old. The hospital is a good draw, is well capitalized and well managed, and has spawn a large medical services community. Alabaster is restricted for northern growth by nearby Pelham, and restricted from southern growth by nearby Calera. As a result, it is growing westward, towards Maylene and Montevallo. There is less growth eastward, but there is some. Shelby County, where Alabaster is located, has been consistently high growth for almost thirty years. I would be very comfortable investing in rental houses there. The school system is good. Not excellent, like those in Hoover, Mountain Brook, Vestavia Hills, or the Oak Mountain area, but still good quality with adequate funding. People will not look for McMansions to buy in Alabaster. They will look for SFR housing, often renting for several years, in my opinion.

Let's connect and I can give you some advice. Too lengthy and complicated for here. The counties and the state are not on the same system.  Especially with Jefferson County, many local problems.  Also Land Bank not the panacea it's advertised to be.  

Michael, send me a PM and I'll give you a name and contact information.