Hear this out loudPauseWhat Is a Tax Lien Sale? In Alabama, a tax lien sale is a public auction that happens once each year. But the winning bidder at the auction doesn’t immediately get title to your home. Generally, after owning a tax certificate for three years, the purchaser is entitled to a tax deed and ownership of the property.
Is Alabama a tax lien state?
Hear this out loudPauseAlabama Property Tax Lien Sales Once there is a tax lien on your home, the taxing authority may hold a tax lien sale. Alabama, unlike some other states, generally holds tax sales once a year, commonly in April and May, though it may vary.
Can a property tax lien be sold in Alabama?
Property Tax Lien Sales in Alabama. If you don’t pay your property taxes in Alabama, the delinquent amount becomes a lien on your home. Once there is a tax lien on your home, the taxing authority may hold a tax lien sale. (If you are struggling to pay your property taxes, learn about your options to avoid a tax sale.)
What’s the interest rate on a tax lien in Alabama?
According to (Sec. 40-10-122 ) 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.
How long does it take to redeem an Alabama tax lien?
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).
When do property taxes become delinquent in Alabama?
In Alabama, taxes are due on October 1 and become delinquent on January 1. (Ala. Code § 40-1-3). When a homeowner doesn’t pay the property taxes, the overdue amount becomes a lien on the home.
