Welcome. This video is part of my series where I explain the methods and procedure for Tax Sales in each state. In this post, I will discuss Alabama Tax Sales.
Alabama Tax Sales Explained
Alabama has a total of 67 counties and is a lien state. They have an interest rate of 12%, a three-year redemption, and typically run their auctions with the Premium Bid style of auction. It’s important to note that in Alabama the premium also receives 12%.
It’s important to note that the accrual rate is monthly, in the sales start in May of each year.
Also, Alabama allows over-the-counter purchase of liens that did not sell at the auction.
On a scale of 1 to 5, I rate Alabama a 3. They have a longer redemption period, which can add up to big bucks and as one of the more rural states, they have less competition from the institutional bidders.
This Stuff Can Be Complex – Let me help.
If you would like to have Alabama Tax Sales explained, even more, click on one of the links below.
Interested in Tax Sales in Another State?
Tax Sales investing is a niche that has the potential to be insanely profitable.
However, most investors do not have a deep understanding of this investing strategy.
Every state has a unique set of rules and regulations. There are some basic rules you need to understand as to how the process works. Generally, states will fall into one of three categories:
- Tax Lien States
- Tax Deed States
- Hybrid States
Hybrids are states who conduct their tax sales by selling tax deeds with a caveat. The deeds have a redemption period much like a tax lien certificate.
This map provides links to information for every state as well as Washington DC.