How do I foreclose on a property after buying a tax lien in Alabama?
Dolan Williams
LawyerThanks for laying all that out so clearly. Since you’ve already bought the liens and you’re past the initial holding period on at least some of them, you’ve definitely got options. The first thing to do is figure out exactly when each lien becomes eligible for foreclosure. Each tax lien you bought has its redemption clock, and in Alabama, property owners generally have 3 years to redeem. If you bought liens from 2019 to 2024, the 2019 ones are probably already ripe for action. You can confirm the exact redemption periods with the county (or sometimes by checking the statute in Ala. Code § 40-10-120 to § 40-10-200). Knowing when each lien matures helps you know which ones you can act on now. I also think it helps to get a real estate agent and do a title search. You’ll want to get a full title report or ownership and encumbrance report. This’ll show if there’s still a mortgage on the property or if there are other liens that could complicate things. This is worth doing before jumping into a foreclosure because it lets you know if you’re dealing with a clean title or if other parties need to be notified. Since you couldn’t find any mortgage info, a proper title search will clear that up. You can also contact the homeowner outright. If the homeowner’s still living there and you’d rather see them redeem the property (and maybe reimburse you for what you paid), you might try contacting them. Sometimes people just need a push, or don’t understand they’re able to redeem. You’re not obligated to do this, but it can avoid the hassle of foreclosure if they’re willing to pay you back. So once you've determined all the right information, done the title search, and if working with the owner fails, and once the redemption period has passed for any of the liens, you can petition the circuit court to issue a tax deed and quiet the title. That’s what Ala. Code § 40-10-197 is talking about. The process isn’t quick or super cheap, but hiring a real estate lawyer for this will help as a last resort. I know it’s a lot, but does that help make sense of things a bit more? I want to make sure I didn’t leave anything out.
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Hi, I own 5 years of tax liens on a property (with a house) in [LOCATION], AL. Since the time frame to redeem is 3 or 4 years (I've read conflicting information) I am wondering what is my course of action going forward? I believe the house is owner-occupied and it would be great if she just paid the liens off and could stay in the home without foreclosure. But if foreclosure is the next step how do i go about this. Thanks in advance.
Hello! My name is Dolan and thank you so much for contacting me! I just had a few quick questions for you: If I can clarify, did you pay the debts for the taxes and secured the lien or is it secured by a judgment? The reason I ask is because usually only the government can seek a lien for unpaid property taxes.
To tell you the truth I don't even know what that means. I bought the lien at a tax lien auction last week from the county of [LOCATION]. When I contacted the county they said to read State code 40-10-197 and I would likely need to get legal advise with how to foreclose. Does that help?
Yes, that does! How much is the lien worth and is the property set to be foreclosed upon for any reason (e.g. mortgage debt)?:
I paid $[DOLLARS] for the liens ([DATE RANGE]). As far as I know there is no foreclosure in the works. I haven't done a title search or whatever it is to find out if their are any other liens on the property. I wanted to get some advise first.
*Ok! I just need a little time to draft up a high-quality answer. I'll be with you as soon as possible. It won't be terribly long, ok?
ok no problem. Also, info that I gleaned from the [LOCATION] county tax site is that the deed date is [DATE]. I can't find any mortgage information though.
Thanks for laying all that out so clearly. Since you’ve already bought the liens and you’re past the initial holding period on at least some of them, you’ve definitely got options. The first thing to do is figure out exactly when each lien becomes eligible for foreclosure. Each tax lien you bought has its redemption clock, and in Alabama, property owners generally have 3 years to redeem. If you bought liens from 2019 to 2024, the 2019 ones are probably already ripe for action. You can confirm the exact redemption periods with the county (or sometimes by checking the statute in Ala. Code § 40-10-120 to § 40-10-200). Knowing when each lien matures helps you know which ones you can act on now. I also think it helps to get a real estate agent and do a title search. You’ll want to get a full title report or ownership and encumbrance report. This’ll show if there’s still a mortgage on the property or if there are other liens that could complicate things. This is worth doing before jumping into a foreclosure because it lets you know if you’re dealing with a clean title or if other parties need to be notified. Since you couldn’t find any mortgage info, a proper title search will clear that up. You can also contact the homeowner outright. If the homeowner’s still living there and you’d rather see them redeem the property (and maybe reimburse you for what you paid), you might try contacting them. Sometimes people just need a push, or don’t understand they’re able to redeem. You’re not obligated to do this, but it can avoid the hassle of foreclosure if they’re willing to pay you back. So once you've determined all the right information, done the title search, and if working with the owner fails, and once the redemption period has passed for any of the liens, you can petition the circuit court to issue a tax deed and quiet the title. That’s what Ala. Code § 40-10-197 is talking about. The process isn’t quick or super cheap, but hiring a real estate lawyer for this will help as a last resort. I know it’s a lot, but does that help make sense of things a bit more? I want to make sure I didn’t leave anything out.
Thank you so much Dolan. That is super helpful. I think we will start with contacting the home owner. Because it would be "cleanest" if they could just redeem.
You’re most welcome!! Please come back if you have questions!
What do you know about immigration law. I am a Canadian looking to relocate to the United States. One pathway that I have seen is as a consultant. My husband is an engineering consultant (petrochemical). Does he have to have more than one American client if he applies to for the E-1 visa?
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Yes, I accidentally hit unsubscribe. I am speaking with "[NAME]" about resubscribing for the rest of my month subscription without having to start all over again.
Oh ok no problem! Immigration law is admittedly not a specialty of mine, but I do have some knowledge here. So to your question about whether he needs more than one client, the law just doesn't require this. He just has to demonstrate "substantial trade. This means there should be a continuous flow of trade between the U.S. and Canada. A single large contract might not suffice unless it results in multiple transactions over time, but one that has regular invoicing could meet the criteria. Nevertheless, so long as he is a Canadian citizen, owns at least 50% of the business, engages in "substantial trade," at least 50% of the trade is international, and he's an executive, then it improves his chances of getting the visa. E-1s are typically issued for up to five years and can be renewed indefinitely, provided the trade continues to meet the visa requirements.
ok great. Thank you very much. :) he would meet all of those requirements.
Perfect! Then he's going to be in good shape.