Used by many large counties like Mobile and Baldwin. Investors bid on the interest rate they are willing to accept on the debt, starting at 12% and bidding down. The winning bidder gets a tax lien certificate.
FAQ Categories / Tax: Land Sales - Alabama Department of Revenue how to buy tax delinquent property in alabama
Buying tax delinquent property in Alabama is a multi-year process that typically begins at a county-level auction and can eventually lead to full ownership through a tax deed. Investors can acquire property either by bidding on or tax certificates at annual auctions, or by purchasing state-held inventory over-the-counter (OTC) . 1. Understand the Two Types of Sales Used by many large counties like Mobile and Baldwin
Many counties now use online platforms like GovEase for their auctions. Registration usually opens about 30 days before the sale and may require a 10% deposit . FAQ Categories / Tax: Land Sales - Alabama
Auctions are held annually, typically starting in May .
The county auctions the property itself to the highest bidder. The winner receives a tax sale certificate, which grants an interest in the land and, in some cases, the right to demand possession shortly after the auction. 2. Participate in Annual Auctions
Alabama counties use one of two systems to handle delinquent taxes: