All Forum Posts by: Tai Bhattad

Hello, I purchased a tax certificate in Baldwin County this past year and I just received a letter from the Revenue Commissioner that a request for redemption has been made and I am to return the tax certificate back to their office.

Is that all there is to it? The letter does t give any details as to who is attempting to redeem and offers no other information. Do I just send the certificate back? Does that mean the Commissioner’s office had been paid by the redeemer and upon my returning of the certificate My money will be returned to me?

Thanks in advance.

call Baldwin county property tax/ redemption office and chat with them for insight to your next steps… you can google the number  

Greetings everyone, I am a new tax lien investor in Alabama. I recently purchased a portfolio of tax deed properties prior to 2018. One of the properties has a lienholder looking to redeem. This property has had extensive repairs which have increased its value of the property. Will I be able to recoup the value of the repairs instead of just the costs plus taxes? I have reviewed the Alabama code 40-10-122. I am just looking for a little more clarity along with cases where these values were granted. 

, you should be careful when accepting quitclaims BEFORE you have a tax deed. The tax sale wipes out the lienholders, who have only redemption rights. If the owner redeems (title goes back into owner) then the liens re-attach to the property again. 

It is my opinion that if you get a quitclaim BEFORE you get your tax deed, then your only path to title was the quitclaim itself.  There is a good argument to be made that all the liens will reattach, just as if you were the former owner.

If, on the other hand, you have a tax deed before the quitclaim, then you already had your own title. The quitclaim merely removed blemishes on the title. 

There is no appellate decision that says that is how it will go. That is just me speculating, based on my knowledge of real estate common law over the past 900 years going back to King Henry II of England (1133 - 1189) up to the present and "how things work." There is a theory, a unity, of things in real estate law. It is what lets you figure out what the right answer should be, even if you do not know for sure what it is.

The better strategy might be to get a release and waiver of redemption rights and a transfer of any claims or defenses to the tax sale, if all you have is a t

Thanks @Denise for the feedback.  I was wondering about this scenario as many people push for QC deeds from Owners after receiving a tax certificate or tax deed. It’s still unclear if a QC deed holder should redeem in any either of the 2 events: tax deed or tax certificate… considering a release/ waiver is not issued.  I think it’s already a challenge getting a QC deed , then to add extra verbiage is a killer with some of the older owners who wants to just get rid of the property   

Thanks Kevin. For these, you typically can’t get a clean title for over 2 years from what I understand. All they give you is a sheriff’s deed.

Let's say I win a property for $50K in cash and then sink $25K of cash in renovations that are absolutely necessary. Let's pretend the ARV is now $100K. I'm looking for something that allows me to pull out as much of the $75K of cash I used.

Are they any lending products that can accommodate all of the nuances of tax deed properties?

If you can get the owner to QC the property to you which can possibly remove any redemption rights ((IF this is applicable in your state/county) I say that because the rules vary across counties/states)), then you can search high & low to find a lender that ‘might’ give you title insurance off the QC deed …  this can remove the 2 yr title period.