All Forum Posts by: Denise Evans

In every county except Jefferson County, if the assessed owner's name was in the pre-auction advertising, and that was the name called off at auction, but that person died before the auction, then the tax sale is void. Any heirs can void out the the tax sale but must pay the investor for taxes and interest. They do not have to pay for improvements, and the investor is not entitled to possession. Jefferson County has a special statute passed in the late 1930's that protects it, and any other county with a population over 500,000. Originally it was 100,000, but amended in the 1980s. Today, that is still only Jefferson County, although Madison County is gaining on them.

If you take the risk and take possession of the property, and hold possession for 3 years after the tax deed date (6 years after the auction in your case) then your "short statute" adverse possession of 3 years will defeat any heir's claims the tax sale was void. The statute of limitations will have expired on their rights to get the property back.

@Dan Portka @Brandon S. First, there's not enough money in the budget to hire all the deputies they need to serve these things and Second, even for the ones they have money to hire, they can't find people to hire. Everybody has the same problem. Everybody in law enforcement has the same  problem as the rest of us, in spades. You can complain, but it won't do you any good.  EVEN IF they could find qualified candidates to hire, do you think the people of Jefferson County are going to vote to increase their ad valorem taxes so the Sheriff's department can hire more deputies to serve more eviction notices for so-called rich investors? It won't happen.  Maybe if there were a crime spree terrorizing the entire county, but I'm not even sure about that.

The bottom line, in business and in government is, "where is the money going to come from?"

Of course, one answer is to charge a very stout fee for each turnout order executed. Perhaps when you call, you can tell the department that you, and other investors, would not be opposed to THAT solution. It would be a lot cheaper than the rent you are losing right now.  I find that complaining usually falls on more receptive ears when a possible solution is also offered.

There is no way. I'm sorry. Usually I can come up with creative solutions for people's challenges, but there is just no way around this particular one.

@Christine Garnier, Tax deeds and tax certificates from ADOR are completely different from tax liens under the newer system.  You seem to be smashing both of them together. All the rules are different.

For tax liens, you must foreclose. You never pay the taxes, you just keep exercising your right of first refusal to buy subsequent year's tax liens, until you are ready to foreclose. When you foreclose, the court awards title to you, enters a quiet title order, and orders the Clerk of the court to issue a deed to you. You have perfect, insurable, title at that point. Unless someone with redemption rights redeems during the lawsuit, in which case you get your redemption money and your tax liens are cancelled.

With tax certificate/tax deed sales under the older system, you pay the taxes each year. After you have a tax deed, you can quiet title. The minimum time period after the tax deed, that you can quiet title, is hotly debated among attorneys, investors, and judges. There is NO clear decision from an appellate court on this subject.  The tax sale wipes out all the liens, but those lienholders have redemption rights. If you have a tax certificate or tax deed and then also obtain a quitclaim deed from the former owner, then title is resurrected in the name of the owner, all the liens re-attach, and then title moves to you, in a split second.  If you simply hold onto the property for ten years after the tax deed date, and maintain possession (usually by renting it out) then you are into old fashioned "color of title adverse possession" which is 10 years. 

If you own a tax deed, you can quitclaim it to anybody, including another entity owned by you. If you own a tax lien, it can be ASSIGNED to anybody, including another entity owned by you.

One "outside the box" play is to track down former owners, pay nominal amounts for a quitclaim deed, and then redeem. That is allowed because you will then have the former owner's redemption rights. Just make sure there are no liens against the property, because they will re-attach upon redemption.

The Alabama Abandoned Motor Vehicle Act applies only if  you are the owner of the property, which means you must have a tax deed.  How long until you have one?

Your only other avenue is to sue for ejectment, get an ejectment order, and when the vehicles have not been removed, have them towed off. Can you find the owners to serve ejectment papers on them? Ejectment is not a cause of action that is capable of service by publication, so if you can't find the owners, I'm not sure what you can do. Call me, and let's brainstorm.

It is not necessarily the PM's fault. The lawyer might have delayed filing the suit. The tenant might have answered and disputed and there were several continuances before a trial.  I happen to know that Jefferson County Sheriff's department is running MANY months behind on executing writs of possession, and there is nothing anybody can do about it. Which is not to say delays were not the fault of the PM, but that is not necessarily true in this instance.  Yes, he needs to get the court file and read it.

If you have the case number, you can call the Bessemer Division Sheriff's office, ask for the civil service division, and perhaps get an estimate on when they will be served.

In Alabama, at least, it is a strategy of actually getting the property, whether the sellers are motivated or not, and whether they are in the wind or not.  Immediate possession rights under older system (still applicable to over the counter sales) and immediate possession with the right strategy still possible with newer system.  Of course, @Account Closed is right about motivated sellers. Don't overlook that aspect of the possibilities. Many people who cannot afford to fix up their properties wonder why they keep paying the taxes year after year, but they feel trapped  into doing it. Inertia prevents them from contacting a real estate agent to sell the property, or perhaps an agent will not take the listing because the property is in such bad shape. Keep your eyes open at all times to whatever possibilities might appear, and you will find yourself finding more opportunities than if you stick to a pre-programmed, off-the-shelf, strategy.  Of course, you need to be prepared before leaping in. But, don't put yourself in an investing straight jacket.

Yes, you can. You need to register as a foreign (meaning out of state) LLC in the states where you invest. The expense is minimal. You will also need to pay a small annual fee for a company in those states to act as your registered agent for service. That is the company upon whom lawsuit papers may be served, the same as serving you, if you are sued. It is a requirement in all states for all foreign entities registered. Unless you register, you will not be allowed access to the courts if you ever need to sue for eviction, etc. If you do not register and wait until you do need to sue (hopefully never, but it does happen) then the registration delays will add extra time to the wait before you can get the tenant out.

@Bruce Lynn, thanks for the shout-out. I do have classes, videos and the authoritative reference book on the subject.  Plus, hello out in Coppell! I went to undergraduate school at University of Dallas, in Irving. I sure miss Dallas, and also Houston, where I practiced law. Been living in Alabama for many years now.