Montgomery County sells tax lien certificates at Montgomery County tax sales. The county needs tax revenues for county services so they allow investors to bid to pay the taxes off plus court fees and costs and in exchange the investor receives the Montgomery County tax lien. Alabama offers investors a great way to make a high return on their investment because they pay 12% on tax lien certificates. Montgomery County releases their list of properties about six weeks before the tax lien certification auction sale, which they post on the Internet as well. The day of the auction, the minimum bid is determined by court decree. The bidder that bids the highest is awarded the tax lien certificate. The owner of the property has three years to redeem the property by paying the amount of the taxes and the fees and costs to the tax lien certificate holder.
Any property that the state has held for longer than three years from the date of the tax lien sale, a tax deed willbe issued to the purchaser without any warranties or covenants conveying right and title to the property to the new owner. The deed must be recorded in the county probate office. You should contact a real estate attorney who specializes in tax delinquent property for further tax and legal advice.
The investor is getting a risk free investment when they purchase tax defaulted Montgomery, AL properties because the county guarantees the payment of the interest on the tax lien certificate. If the owner does not redeem the property, you get to foreclosure and acquire the property for pennies on the dollar. When you buy tax deeds at tax deed auctions for tax defaulted properties that have been held for more than three years by the county, investors can purchase the real estate at 75% to 90% below market value because you are purchasing it for the amount of back taxes owed.
Investors should look into buying Montgomery tax defaulted properties. They are a terrific way to get a high yield of return on your investment. Check the county list to find a property you are interested in and then investigate the home sale prices in the area. You will be pleasantly surprised at how much you save when you acquire a tax lien certificate or tax deed on Montgomery property. Once you acquire the property, you can rehab it and lease it out or sell it. Either way you know you are getting a property with built in equity.