Walker County, Alabama holds tax certificate sales (tax
lien certificate auctions) on properties on which the owners have failed to pay
the property taxes for the preceding year. While it varies from county to
county, in Alabama the tax sales 9tax lien certificate auctions) typically take
place in the spring time, around May. The State of Alabama offers a 12% annual
rate of interest, and the certificates have a 3 year redemption period. So,
it’s possible to earn a 36% return on your investment, if the certificate is
redeemed in the final year!
If, after 3 years the owner of the property does not pay
their taxes and redeem the certificate, the owner of the tax lien certificate
is issued a tax deed and now owns the property. This process is automatic in
the State of Alabama, and not necessarily so in other states. Sometimes, if the
redemption period on a tax lien certificate expires, the investor must make use
of the court system in order to foreclose on land. Luckily for those who
purchase in Alabama, that is not the case.
It’s important to take this bit of information into
account when attending a tax lien certificate auction. The winner of each
auction is typically chosen by who is willing to pay the most for each
certificate i.e. “overbid amount.” When you bid above and beyond the minimum
starting bid for a parcel of land, it effectively reduces the profit gained via
the 12% interest rate. As such, it is very important to be well-informed when
attending tax sales (tax lien certificate auctions) in Alabama to make sure you
don’t end up investing in a loss.
The best place to start gathering information on the
properties up for auction is the Walker County Revenue Commission. It is
located in the County Courthouse at 1803 3rd Ave. Suite 102 in
Jasper, Alabama 35501. The phone number is (205) 384-7000.
Even with all the proof of how tax lien certificate
investing is safe and lucrative, many people don’t know how to begin to invest.
Some are unaware that you can begin with less money than you’d think. Would you
like to know the truth about this 100 year old process? Go to: http://www.tedthomas.com/truth-about-tax-lien-certificates/
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