Ok fellas so I just picked up a vacant 2/1 cinder block house at the tax sale. I over paid for it in my opinion but some jerk at the sale kept running the bid up. I don’t even know if he bought anything. I’m sure he may have been hired to do that. ANYWAY. This was our first tax purchase and would be a potential third rental. It was a big deal because it’s adjacent to my 29 acres and my home. I wanted it to control who moved in and obvious addition to what I already own. I know I have to pay taxes on it for three years then I get the title. Im fairly certain that the property had a lien against it. Does that affect me any? Im not THAT concerned with it because I wanted to prevent riff raff and will never sell so im not so worried about a clear title. But I wanna slowly rehab it. The lady doesn’t live there and can’t pay the taxes (evident it was at flash sale) so im somewhat confident that she can’t pay what she would now owe currently. Wait or slow rehab?

Someone correct me if I’m wrong, but I believe she’d have to pay you back for renovations as well.

I would never rehab a house with someone living in it that just lost the home. You see it all the time where folks are foreclosed on then when they leave they remove anything of value from the home and sell it or just trash the house on the way out.

Sorry I wasn’t clear. The house is vacant and has been for at least 7-8 years.

I haven’t really ever explored buying via tax auctions but I believe that is correct

So you get to take possession of it before you pay the 3 years of taxes on it? Guess I never knew how that worked.

“Necessary” repairs only. No major improvements or changes would qualify.




At auction you’re issued a tax certificate, after 3yrs of payment the state will then issue a deed for the property.

I would repair anything that is critical like a roof leak etc, but if I understand correctly, the owner can pay the back taxes and any interest and cost for necessary repairs and then the house is hers again. I would spend my effort on cleaning up the yard/property and keeping the yard mowed.

I believe they will have to repay you for a if they decide to pay the the taxes. Keep up with your expenses and go for it.

The liens can fall off also, depending on what it is and if they renew. Do minor repairs and put a tenant in it. They most likely aren't coming back anyway.

Necessary repairs and reasonable maintenance. If they do come back they will have to satisfy the back taxes, cover your eligible repairs and maintenance plus interest...at one time and before the 3 year wait is up.

I'd make it habitable based on HUD standards...considered reasonable and necessary as the minimum for Section 8 or other federal housing standards. Not that you have to accept them, but you would be bringing the house up to an recognized acceptable standard. Hard for anyone to argue you went above what is necessary if you took that property standard approach.

Then rent for cash flow until you have the deed outright and it's yours to do with what you want.

Not sure on Alabama but in Ms you would be trespassing if you are on the property before you have a tax deed.

The tax deed that state gives after the three years still doesn’t give full ownership though, correct? I believe there are still more hoops the jump through besides just paying the taxes for three years and getting the property.

I will have a tax certificate in the mail next week. Houston county says that as long as I keep paying the taxes after 3 years I’ll get issued a deed. That’s how I’ve understood it. For the previous owner to get the property back she has to reimburse what I paid plus interest. If anything I haven’t lost any money. I truly don’t care if the property sits there. It prevents anyone else from getting it. I will change the locks next week and do what needs to be done. As far as I’m concerned we own the place and will treat it as our own until told otherwise.

Tax deed, is the deed. But it is not the Title. Tax delinquent properties that end up being a tax sale Certificate (under 3 years) or a tax sale deed property (after 3 years delinquent) no longer have a continuous chain of title. So it requires filing a quiet title action with the court. This will then give full ownership. In a traditional real estate sale one owner transfers ownership title to the purchaser. Tax properties don't have that option so you have to file for the title after you receive the tax deed.

Very useful thank you.

Also from my time years ago doing tax sells in Ms, Lien holders will normally wait until just before the taxes are delinquent the third year before they step in and pay them. If you could be sure there isn't a Lein on the property, the easiest thing would be to offer her a couple thousand to sign you a deed to the property. If she can't pay the taxes she would probably be glad to get the money and you wouldn't have to sit around wondering for two years wether you are going to end up with it or not.

Just wondering:

If the home owner owes several people money and they all placed a lien on the home and the home was auctioned off due to not paying taxes.....if the liens are to be paid off by the new owner when they take title and the amount is more than the home is worth...what happens?? Is this scenario possible?

If there are liens, can they be identified prior to bidding on properties?

That’s the case with this place. I tried buying it several years ago and she could never produce a clear title due to some shady stuff and the house had a $300k lien on it from a foreclosure on another home. The house is worth $30k on a good day. I’m not paying any lien. I don’t care if it doesn’t have a clear title because I don’t plan on selling it in my lifetime because it’s adjoining my property. I just wanted it to prevent someone moving in that a $30k would attract and I can control what happens to it.