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Tax Lien Sale

Departments

Contact Information

Tax Collector:
Peyton C. Cochrane

Mailing Address:
Tuscaloosa County Courthouse
714 Greensboro Avenue, Room 124
Tuscaloosa, AL 35401-1891

Phone: (205) 464-8230

Email: collector2@tuscco.com

Office Location

Main Office:
Tuscaloosa County Courthouse
714 Greensboro Avenue, Room 124
Tuscaloosa, AL 35401-1891

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When is Tax Lien Sale Held?
The Tuscaloosa County Tax Lien Sale takes place annually. Listed properties are published Mid-March under the Tax Collector’s page or on the GovEase.com website.

Where is Tax Lien Sale Held?
Place: Online at GovEase.com 
Time: 10:00 A.M. until 1:00 p.m. or when all properties are sold.

Registration Required
Registration is required prior to the online sale with a $100 security deposit. Registration begins two weeks prior to sale. Use this application to receive prior approval needed from Tax Collector’s office. The form must be filled out and returned by bringing it into the office or emailing the form to collector2@tuscco.com.

Bidding Process
Anyone wishing to purchase a tax lien property once approved, must go online and bid interest percents. The lowest bid interest wins.

Purchasing Property Tax Lien
Payment IN FULL is required at least one hour before the end of the Sale Day.
Payment methods : Cash, Money Order, or Certified Funds
CREDIT CARD PAYMENTS are NOT accepted at this time.

A Certificate Tax Lien will be tendered after the sale is finalized and will be mailed out within 10 days. (This is NOT a Tax Deed)

After the Tax Lien Sale Purchase
The property can be redeemed at any time within the first 3 years from the date of the Tax Lien Sale. The owners of said property can redeem this property though the Tax Collector’s Office. The principal, plus interest and fees, at the time of redemption is refunded to the purchasers of the tax lien. The current rate of interest is 12% annually. The certificate of sale is then null and void.  At that time the purchaser must surrender his certificate.

Properties Not Purchased at Tax Lien Sale
Any tax properties NOT purchased through the Tax Lien Sale by individuals or companies, are sold by the Tax Collector’s Office. Anyone wishing to buy a tax lien at this time must contact the Tax Collector’s Office.

Tax Lien Quick Summary Info

You are not purchasing the property but a tax lien against the property in the amount of all taxes, interest, penalties, fees, and cost due on the property, origination cost, auction fee, and certificate fee.

If it is determined that the tax lien for which you have submitted payment for is unavailable for any reason, your payment will be refunded to you without interest. Interest stops on the day of redemption.

All research must be done by you. You are advised to research parcel history and tax status prior to purchasing. Property information may be found at https://Alproptax.com/

Our tax lien auction is online, you may register as a bidder by going to www.govease.com.

You must arrange payment arrangements with the Tax Collector’s Office and let the Tax Collector’s Office know the amount of your projected investment, to submit for approval. This must be done prior to any bidding.

Each bidder will be assigned a number for use during the bidding process. The successful bidder will pay the entire amount of taxes, interest, fees, penalties, and cost associated with the parcel no later than one hour before close of business on the day of auction.

ALL SALES ARE FINAL!

Bids are awarded on the lowest interest rate bid. The maximum bid is 12% simple interest per annum prorated monthly. The lowest acceptable bid is 0% per annum.

When the redemption of the Certificate of Purchase on the property occurs, the investor receives their money back plus interest at the rate they bid at the auction or sale. Interest starts accruing on the first day after the Tax Lien Auction.

Liens are recorded in the probate office in the Courthouse.

If a tax lien is not redeemed and the purchaser or purchaser’s heirs or assigns fails to commence an action to foreclosure on or before ten years from the date of purchase, the certificate of purchase will expire, and the lien is void. Act 2018-577.

For additional information please refer to The Code of Alabama 1975 – paying particular attention to Title 40 Chapter 10.

In accordance with Title 40, Chapter 10, Code of Ala. 1975 (§40-10-180 through 200), the Tuscaloosa County Tax Collecting official has authority to auction and sell tax liens on properties for which ad valorem property taxes are delinquent.

The format of sale has officially changed to tax lien auction and sale effective with the 2020 tax collection year and as advertised on the Tuscaloosa County website in the month of September 2020.

A Tax Lien Auction will be held April 20, 2021. The date of the Auction, here after, will be announced when delinquent notices are mailed each January. The following process applies to Tuscaloosa County’s Tax Lien Auction and Sale:

  • Before bidding begins, the Tax Collecting Official will list the Parcel number associated with the parcel on which taxes are delinquent, the name(s) of the last known parcel’s owner, as listed in the property assessment and the taxes due for each respective parcel, and all cost fees and interest.
  • Bidders will purchase the tax liens for the property in the amount of past-due taxes, which equals the principal amount of the elinquent taxes, the amount of accrued and accruing interest thereon, and penalties, fees, and costs proposed through the day of the tax lien auction or sale.
  • Purchasers will bid down the interest rate they are willing to accept on their purchase of a tax lien starting at 12% annually. The Tax Collecting official shall set increments of the bids.
  • Competing bidders will continue to bid down the interest rate until no bidder continues to bid lower or until the interest rate reaches 0%.
  • If there is a tie, the Tax Collecting official shall break the tie by having each bidder (in the tie) to draw a card from a container with index cards. One card will read “yes”  and the other cards will be blank. The one drawing the “yes” card will determine the winning bidder for the tax lien.

NOTE: The online company (GovEase) computer will choose who wins the tie

  • The name of the tax lien purchaser will be recorded in the Tuscaloosa County Tax official’s office at the time of sale, along with the date of sale, the interest rate, and tax lien purchaser’s contact information, known as the record of tax lien auction and sale.
  • All bids must be paid 1 hour before closing of the Tax Collecting official’s office, on the date of Tax Lien Auction via cash or immediately available certified funds (no personal checks are accepted.)
  • A $5.00 tax auction certificate fee will be added to each sale.
  • Within 10 days of a completed tax lien auction or sale, the Tax Collecting official will send notice to the property owner for whom the property was assessed informing said property owner that the tax lien has been auctioned. The notice will include the date of the auction and the name and address of the tax lien purchaser. This notice will be sent by first class mail to the address listed in the property assessment.
  • The tax lien certificate purchaser will have the first right to purchase the tax lien relating to a subsequent delinquency on the property as described in the tax lien certificate of the holder and will be entitled to the same interest rate as shown on the previous tax lien certificate. Subsequent tax notices will be mailed to the property owners of record, not to tax lien certificate holders. If a property owner wishes to pay current year property taxes based on a tax notice he or she received, the tax lien must be satisfied on behalf of the tax lien certificate holder before current year taxes can be paid.
  • If a tax lien certificate purchaser refuses the right to purchase a tax lien relating to a subsequent delinquency as described above, the subsequent delinquent tax lien will be auctioned. The biddown process will start at 12% as a new tax lien auction with bidders bidding down the interest rate as described above.

Redemption: (§40-10-193)

  • Property tax liens may be redeemed by the following: The owner, including a partial owner of less than whole in the real property, or heirs or personal representative.
  • Any mortgagee or purchaser of the property or any portion of the property.
  • Any person listed under subsection (a) of Section 40-10-120, Code of Alabama 1975, if the property has been sold for taxes.
  • Property tax liens may be redeemed as indicated here by payment to the Tax Collecting official of the amount specified on the tax lien certificate as the total amount of delinquent tax, interest, penalties, and fees and cost paid to the purchaser of the tax lien certificate plus an interest at the rate specified in the tax lien certificate and a $10 redemption fee.

Tax Lien Sale: (§40-10-199)

  • The Tax Collecting official within 45 days after the tax lien auction date, may sell at private sale an unsold tax lien for no less than all taxes, interest, penalties, cost, and fees. The purchaser at private sale shall be entitled to interest on the amount paid at a rate agreed to by the Tax Collecting official, not to exceed 12%. All tax liens that remain unsold by the tax lien auction or sale shall be included in all future tax lien auctions or sales until sold.
  • Notification will be handled same as above.