[map] Alabama

ALABAMA TAX LIEN

Interest Rate 12%
Redemption 3 Years

Alabama, is quite simple.  When the redemption has expired the lien holder can bring the lien into the county tax office
and “exchange” it for the deed to the property.

Alabama Tax Lien Certificates

Tax lien certificates are sold each year in May.  The auction is held at County Building.  The bidding will start with the amount of back taxes that are owed. The highest bids wins. 

The redemption period is (3) years, meaning the owner has 3 years to pay the amount the investor paid plus 12% per annum on the minimum and the overbid 

If the property is not redeemed the investor can apply for a tax deed to the property.

Tax Sale Type:Tax Lien Certificates (Sec. 40-10-19 New Window)

Contact: Tax Collector (Sec. 40-10-12 New Window)

Interest Rate: 12% per annum (Sec. 40-10-122 New Window)

Penalty Rate: Not Applicable Not Applicable

Bid Procedure: Premium Bid (Sec. 40-10-16 New Window)

Redemption Period: (3) three years (Sec. 40-10-29 New Window)

Law: Code of Alabama, Title 40, Chapter 10, "Sale of Land."

Alabama
Summary: After the court issues a decree (Sec. 40-10-11), properties with delinquent taxes are sold at an auction to the highest bidder for cash, between the hours of 10:00 A.M. and 4:00 P.M. (Sec. 40-10-15). The minimum bid is the amount decreed by the court, being delinquent taxes, interest, costs and penalties (Sec. 40-10-16).

 As soon after the confirmation of sale is made as may be practicable, the tax collector must make out and deliver to each purchaser, other than the state, a certificate of purchase (Sec. 40-10-19).
If no person shall bid for any real estate offered at such sale an amount sufficient to pay the sum specified in the decree of sale, and the costs and expenses subsequently accruing, the judge of probate shall bid in such real estate for the state at a price not exceeding the sum specified in such decree and such subsequently accruing
cost and expenses. (Sec. 40-10-18). A tax lien certificate is issued to the state, but the tax lien certificate may
subsequently be purchased directly from the State through assignment (Sec. 40-10-21).

Law: Code of Alabama, Title 40, Chapter 10, “Sale of Land.”

Contact: County Tax

Collector (Sec. 40-10-12).

Interest Rate: 12% per annum

(Sec. 40-10-122). “In order to obtain the redemption of land from tax sales where the same has been sold to one other than the state, the party desiring to make such redemption shall deposit with the judge of probate of the county in which the land is situated the amount of money for which the lands were sold, with interest thereon at the rate of 12 percent per annum from date of sale.” Both the minimum and premium bid amounts earn interest.

Auction Type: Tax Lien

Certificate (Sec. 40-10-19). “As soon after the confirmation of sale is made as may be practicable, the tax collector must make out and deliver to each purchaser, other than the state, a certificate
of purchase, which shall contain a description of the real estate sold and show that the sum was assessed by the assessor, to whom assessed, the date of assessment, for what year or years the taxes were due, the amount of taxes thereon, the amount of and the name of the holder of each tax lien certificate related thereto, distinguishing the amount due the state and county and for school purposes and to each holder of a tax lien certificate and the fees and costs, that it was advertised and how long, that it was offered for sale and at what time, who became the purchaser, at what price and the fact and date of the confirmation of such sale.”

Bidding Procedure:
Premium bid / highest bid.

(Sec. 40-10-16). 
Costs: The cost of advertising the part of such notices pertaining to lands purchased by others than the state shall be covered by the bids of the purchaser and collected by the collector as part of the purchase money (Sec.
40-10-23). When the purchaser returns the tax lien certificate a payment of a fee of $5 to the judge of probate will be required (Sec. 40-10-29).

Redemption Period:
Three (3) years after the sale (Sec. 40-10-29). “After the expiration of three years from the date of the sale of any real estate for taxes, the judge of probate then in office must execute and deliver to the purchaser, other than the state, or person to whom the certificate of purchase has been assigned, upon the return of the certificate and payment of a fee of $5 to the judge of probate, a deed to each lot or parcel of real estate sold to the purchaser and remaining unredeemed .”
Deed Assigned at Foreclosure to: Tax Lien Certificate holder (Sec. 40-10-29). “After the expiration of three (3) years from the date of the sale of any real estate for taxes, the judge of probate then in office must execute and deliver to the purchaser … a deed to each lot or parcel of real estate sold to the purchaser and remaining unredeemed … and such deed shall convey to and vest in the grantee all the right, title, interest and estate of the person whose duty it was to pay the taxes on such real estate and the lien and claim of the state and county thereto, but it shall not convey the right, title or interest of any reversioner or remainderman therein.”
Notes: The deed conveyed upon expiration of the redemption period is not sufficient. You’ll need to consult your legal professional for assistance with a quiet title action. Leftover liens not sold at the county level can be purchased from the Alabama State Commissioner of Revenue (Sec. 40-10-21 and 40-10-132)

Alabama Department of Revenue
Property Tax Division
50 North Ripley
Montgomery, AL 36132
(334) 242-1170
http://www.revenue.alabama.gov/advalorem/transcript/transcript.htm

Alabama Contacts
number of Counties/boroughs: 11
Baldwin County
312 Courthouse Square
Delinquent Property Tax Division
Bay Minette, AL 36507-4809
Phone: (251) 937-9561
www.co.baldwin.al.us

Calhoun County
1702 Noble Street
Delinquent Property Tax Division
Anniston, AL 36201-3841
Phone: (256) 241-2800
www.calhouncounty.org

Etowah County
800 Forrest Avenue
Delinquent Property Tax Division
Gadsden, AL 35901-3663
Phone: (256) 549-5300
www.etowahcounty.org

Jefferson County
716 Richard Arrington Jr. Blvd. N.
Delinquent Property Tax Division
Birmingham, AL 35203-0100
Phone: (205) 325-5300
www.jeffcointouch.com

Madison County
100 North Side Square
Delinquent Property Tax Division
Huntsville, AL 35801-4800
Phone: (256) 532-3327
www.co.madison.al.us

Mobile County
205 Government Street Property Tax Division Mobile, AL 36602
Phone: (251) 574-5077
Montgomery County
P.O. Box 1667
Delinquent Property Tax
Division Montgomery, AL 36102Phone: (334) 832-1210

Morgan County
P.O. Box 668
Delinquent Property Tax
Division Decatur, AL 35602
Phone: (256) 351-4737
www.co.morgan.al.us

Shelby County
PO Box 467
Delinquent Property Tax
Division Columbiana, AL 35051
Phone: (205) 669-3740
www.shelbycountyalabama.com

Tuscaloosa County
PO Box 20113
Delinquent Property Tax
Division Tuscaloosa, AL 35402
Phone: (205) 349-3870
www.tuscco.com