Alabama Tax Lien Certificates

Alabama tax lien certificates are sold at County Tax Sales during the month of May each year. The bidding begins at just the back taxes owed. The winning bidder at an Alabama tax sale is the bidder with the greatest bid.

The original owner has (3) three years to redeem his or her interest in the property. To redeem, the original owner must tender the amount the investor paid to purchase the Alabama tax lien certificate plus 12% per annum on the minimum and the overbid (see notes on bidding).

If the property is not redeemed within the (3) three year redemption period the purchaser of the Alabama tax lien certificate 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." New Window

Additional Notes:

Important. According to (Sec. 40-10-29 New Window and Sec. 40-10-30 New Window) after the 3 year redemption period has expired the judge of probate 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 conveyed upon expiration of the redemption period is not sufficient.

As the purchaser of an Alabama tax lien certificate you need to be aware that you will need to consult a legal professional for assistance with a quiet title action.

Left-over liens. Tax lien certificates not sold at the county level can be purchased from the Alabama State Commissioner of Revenue (Sec. 40-10-21 New Window and 40-10-132 New Window)

Alabama Department of Revenue
Property Tax Division
50 North Ripley
Montgomery, AL 36132
(334) 242-1170
Visit Alabama Department of Revenue Website

Caution on bidding. According to (Sec. 40-10-122 New Window) the bidder will only earn interest at the rate of 12 percent per annum on the amount of all taxes and any excess bid that is less than or equal to 15 percent of the market value as established by the county board of equalization which can be determined by reviewing the tax collector records.

Therefore, should the investor should enter into competitive bidding, he or she should never place a bid in excess of 15 percent of the value as determined by the county board of equalization.

Disposition of excess arising from sale. According to (Sec. 40-10-28 New Window) the proceeds or excess funds generated from the sale of real estate remaining after satisfying the amount of the decree of sale, costs, fees, subsequently accruing, are to be paid to the owner, or his agent, or to the person legally representing such owner, or into the county treasury.

Tax sale overages. According to (Sec. 40-10-28 New Window) if such tax sale proceeds, tax sale overages, or excess funds are not requested within three years after the sale of the property such money shall thereafter be treated as part of the general fund of the county. In addition, any time within 10 years after the funds have been deemed as part of the general fund of the county, on proof made by any person that he is the rightful owner of such excess money order the payment thereof to such owner, his heir or legal representative else such excess funds shall become the property of the county.

Agreement to locate property. According to (Sec. 35-12-93 New Window) "(a) An agreement by an owner, the primary purpose of which is to locate, deliver, recover, or assist in the recovery of property that is presumed abandoned is void and unenforceable if it was entered into during the period commencing on the date the property was presumed abandoned and extending to a time that is 24 months after the date the property is paid or delivered to the Treasurer. ..." and "(e) An owner who has agreed to pay compensation that is unconscionable, may maintain an action to reduce the compensation to a conscionable amount. ..."

Presumption of abandonment. In addition (Sec. 35-12-72 New Window) says "(a) Property is presumed abandoned if it is unclaimed by the apparent owner during the time set forth below for the particular property: (13) Property held by a court, government, governmental subdivision, agency, or instrumentality, one year after the property becomes distributable. ..."

Alabama Tax Sale Discussion

Below you will find a collection of the latest user questions and comments relating to Tax Lien Certificates Alabama.

Type your question or comment using the form below:

 

comments powered by Disqus
charlene
After a tax sale deed is obtained does the purchaser become the owner of the property?
cindy demko
wanting to relocate to Alabama. how long do I have to wait to move after purchasing a home threw a tax lien?
Sheokie Johnson
I'm interested in becoming an investor in property taxes any tips
TaxLienUniversity.com
You will need to contact the County Tax Collector or Revenue Commissioner to obtain the latest tax sale proceeds list.
Mary
Is there a website where copies of current excess proceeds list in Fulton County, GA and Calhoun,AL can be obtained?
JAMES
I am looking for a web site to find more backround on your company as i have a phone interview with one of your people tomorrow at 8pm
TaxLienUniversity.com
Yes, Alabama is a great state for tax sale overages, excess funds, and tax sale proceeds.
Jeremy Johnson
Hello, does anyone know if there are tax sale overages in Alabama?
Alan Kruegar
Alabama tax lien certificate sales are generally held annually in the month of May.
TaxLienUniversity.com
Real estate property taxes are due in October and are considered delinquent on January 1. The tax sale list (list of Alabama Tax Lien Certificates) is published in May.
Click here to post your question
 

Counties located in Alabama

The following is a list of counties located in the state of Alabama.

Tax Lien Certificates for properties located in the following counties are sold at Alabama county tax sales.

Learn more about each county's individual tax sale process by clicking on the name of the county for which you are interested from the list below:

County / Municipality:  Population: 
Autauga County, AL  43,671
Baldwin County, AL  140,415
Barbour County, AL  29,038
Bibb County, AL  20,826
Blount County, AL  51,024
Bullock County, AL  11,714
Butler County, AL  21,399
Calhoun County, AL  112,249
Chambers County, AL  36,583
Cherokee County, AL  23,988
Chilton County, AL  39,593
Choctaw County, AL  15,922
Clarke County, AL  27,867
Clay County, AL  14,254
Cleburne County, AL  14,123
Coffee County, AL  43,615
Colbert County, AL  54,984
Conecuh County, AL  14,089
Coosa County, AL  12,202
Covington County, AL  37,631
Crenshaw County, AL  13,665
Cullman County, AL  77,483
Dale County, AL  49,129
Dallas County, AL  46,365
Dekalb County, AL  64,452
Elmore County, AL  65,874
Escambia County, AL  38,440
Etowah County, AL  103,459
Fayette County, AL  18,495
Franklin County, AL  31,223
Geneva County, AL  25,764
Greene County, AL  9,974
Hale County, AL  17,185
Henry County, AL  16,310
Houston County, AL  88,787
Jackson County, AL  53,926
Jefferson County, AL  662,047
Lamar County, AL  15,904
Lauderdale County, AL  87,966
Lawrence County, AL  34,803
Lee County, AL  115,092
Limestone County, AL  65,676
Lowndes County, AL  13,473
Macon County, AL  24,105
Madison County, AL  276,700
Marengo County, AL  22,539
Marion County, AL  31,214
Marshall County, AL  82,231
Mobile County, AL  399,843
Monroe County, AL  24,324
Montgomery County, AL  223,510
Morgan County, AL  111,064
Perry County, AL  11,861
Pickens County, AL  20,949
Pike County, AL  29,605
Randolph County, AL  22,380
Russell County, AL  49,756
Shelby County, AL  143,293
St Clair County, AL  64,742
Sumter County, AL  14,798
Talladega County, AL  80,321
Tallapoosa County, AL  41,475
Tuscaloosa County, AL  164,875
Walker County, AL  70,713
Washington County, AL  18,097
Wilcox County, AL  13,183
Winston County, AL  24,843

Tax Lien University, Inc. is an educational organization, and individual performance depends upon the individual skills, time availability, and dedication of each student. Testimonials included may not represent typical results. Unique experiences and past performances do not guarantee future results. Tax Lien University, Inc. its owners, employees, and affiliates do not give investment or financial advice and are not licensed as brokers by or registered as advisors with any agency. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.

Master Tax Liens & Tax Deeds

Master the steps and strategies of buying tax liens and tax deeds with our FREE 4-DISC Training Course

You can immediately download the course for no charge or if you prefer, just pay a small shipping fee and we'll mail it to you.

Get the FREE Training Course.

 

Tax Lien Certificate States

Research all fifty (50) states to determine which offers the right interest rate, redemption period, and more.

Click here to learn more.

 

Customer Support with Tax Lien Certificate Questions

Tax Lien Certificate Reports

Below is a list of free articles on how to profit with tax lien certificates, tax deeds, and more.

 

The Rule of 72 Calculator

The rule of 72 says that to find the number of years required to double your investment at a given interest rate, you simply divide the interest rate into 72.

 

Interest Rate: %
Years Required for Principal to Double
    Exact Answer:
    Rule of 72 Estimate:

 

For example, if you want to know how long it will take to double your money at eighteen percent interest, divide 18 into 72 and get 4 years.

 

Our Educational Materials

Creating Wealth Without Risk™ was designed to help you take full-advantage of safe, certain, and high-yielding tax lien certificates and tax deeds.

Click here to learn more.

 

Tax Lien University Reviews

"I purchased 3 tax lien certificates at an internet auction for Miami-Dade County, Florida. All three were buildable vacant lots in moderate income neighborhoods. The prices were: (1)$1,018.86 (2) $1,224.90 (3) $1,654.82. I got 18% interest on all of them. I placed 39 bids in total."

- A. Hamad, Florida
June 9, 2011 6:17:32 PM MDT

"I thought that the course were very clear and easy to understand as well as being highly informative and to the point. The information contained within is worth thousands and thousands of dollars. I would recommend that any one serious about being a smart investor buy these books and put it into action!"

- S. Roy, London

"Thank you for your great work. I received you training manuals last night and haven't been able to stop reading. I would recommend this course to anyone who is interested in getting into Tax Lien Certificates."

- J. Bennett, California

 

State Tax Sale Summaries

Research each state's individual tax sale process including whether it is a tax lien certificate, tax deed, or tax deed hybrid, redemption period, bidding method, and the interest/penalty rate by clicking on the name of the state below:

- Alabama Tax Sales
- Alaska Tax Sales
- Arizona Tax Sales
- Arkansas Tax Sales
- California Tax Sales
- Colorado Tax Sales
- Connecticut Tax Sales
- Delaware Tax Sales
- Florida Tax Sales
- Georgia Tax Sales
- Hawaii Tax Sales
- Iowa Tax Sales

- Idaho Tax Sales
- Illinois Tax Sales
- Indiana Tax Sales
- Kansas Tax Sales
- Kentucky Tax Sales
- Louisiana Tax Sales
- Maine Tax Sales
- Maryland Tax Sales
- Massachusetts Tax Sales
- Michigan Tax Sales
- Minnesota Tax Sales
- Mississippi Tax Sales

- Missouri Tax Sales
- Montana Tax Sales
- Nebraska Tax Sales
- Nevada Tax Sales
- New Hampshire Tax Sales
- New Jersey Tax Sales
- New Mexico Tax Sales
- New York Tax Sales
- North Carolina Tax Sales
- North Dakota Tax Sales
- Ohio Tax Sales
- Oklahoma Tax Sales
- Oregon Tax Sales

- Pennsylvania Tax Sales
- Rhode Island Tax Sales
- South Carolina Tax Sales
- South Dakota Tax Sales
- Tennessee Tax Sales
- Texas Tax Sales
- Utah Tax Sales
- Vermont Tax Sales
- Virginia Tax Sales
- Washington Tax Sales
- West Virginia Tax Sales
- Wisconsin Tax Sales
- Wyoming Tax Sales