Tax Lien Information

Tax Lien Auction

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. Your Certificate of Purchase will entitle you first right of refusal to purchase the lien at the same interest rate on the property the next year if the property comes delinquent between 5 and 30 days before the upcoming auction.  Interest continues until the lien is redeemed or a foreclosure action results. You are advised to investigate, prior to purchasing, to determine whether the property would be of sufficient use or value to you should you be fortunate or unfortunate enough to be in a position to obtain a deed at some future date.

In the event you do not exercise your first right of refusal, your Certificate of Purchase will be canceled, added to the upcoming auction and sold to the newest bidder. (Section 40-10-191 Code of Alabama)

In the event of bankruptcy proceedings subsequent to the sale of the lien, there is no guarantee that the purchaser of the tax lien will receive the anticipated interest or any interest whatsoever, which determination will be made by the United States Bankruptcy Court.

Research

You are advised to research parcel genealogy and tax statues prior to purchasing.  The Delinquent Tax Lien Auction List will be advertised on our website, www.walkercountyrevenue.com, starting 30 days prior to our tax lien auction.

All searches must be done by you. Property information may be found on the revenue website and property maps are located at www.walkercountymaps.com. The lien bears interest at the bid rate from the first day following the purchase of the tax lien.

Pre-sale Requirements for the Auction

Our tax lien auction is online; you may register as a bidder by going to www.govease.com. After registration, you must still arrange payment and let the Revenue Commissioner’s Office know the amount of your projected investment to submit for approval. A Bank Statement or Balance Letter from your bank will be required for preapproval bidding limit.  This must be done prior to any bidding. In order to be approved, Bidder registration must be completed by 3:30 p.m. (CST) the Friday before the Tax Lien Auction. There will be no more approvals for the auction after that time. The Tax Lien Auction begins at 8:30 a.m. the first Monday in May each year.

In order for Walker County to report interest received by certificate holders in accordance with the Internal Revenue Service regulations, this office is required by the I.R.S. to obtain the tax identification number of the purchaser at the time of purchase of the tax lien. Processing of your certificate will not begin until a proper W-9 form is received.

All tax liens purchased during the auction must be paid no later than the close of business two days following the date of the online auction.  Payment must be made in office by cash, certified funds or credit card payments will be accepted over the phone or over-the-counter. A 2.5% transaction fee will be charged for all credit card transactions. We accept MasterCard, Visa, and Discover. We are not able to process by electronic check or wire transfers. 

Bid Procedures for the Auction

Each bidder will be assigned a number for use during the bidding process. The lien is sold to the bidder bidding the lowest interest rate on the amount required to be paid to redeem the property from auction. The beginning interest rate bid shall not exceed a rate of 12%. Additional bids may be made at a rate less than the immediately proceeding bid. The bid will be in 1% increments. Ties at 0% are broken by a random numerical generator.  

ALL SALES ARE FINAL!!!

The successful bidder will pay the entire amount of taxes, interest, fees, penalties, and cost associated with the parcel as of the day of auction. The bidder must pay with the guaranteed funds, as mentioned in the Pre-sale Requirements section, no later than the close of business two days following the date of the online auction.

Liens not sold at Tax Lien Auction

Liens that do not sale at the Tax Lien Auction go to the county. They can be purchased at any time over-the-counter after the Tax Lien Auction. They cannot be purchased before the Tax Lien Auction.

Tax Lien Certificates

A Tax Lien Auction or Sale Certificate of Purchase will be mailed within 10 business days after the auction to the mailing address filed at the time of registration.  It is the responsibility of the purchaser/ investor to keep up with their original Certificates of Purchase. You will need this in order to receive your check if the property is redeemed.  Replacement of a lost or misplaced certificate will result in a $50 replacement fee.

Redemption of Liens

Upon redemption of the Certificate of Purchase on the property, 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 and ends on the day of redemption.

Liens

Liens may be recorded in the Probate Office.

Tax Lien Expiration

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.

Action of Foreclosure

At anytime not less than 4 years after the tax lien auction or the tax official's sale of the tax lien but not more than 10 years after the auction or sale, if a tax lien has not been redeemed, the holder of ALL of the sold, unexpired, outstanding tax lien certificates for a parcel of property may bring in the Circuit Court of the county in which the property is located an action to foreclose the right to redeem and to quiet title of the property.  For more information and details about this process, please review Section 40-10-197 of the Code of Alabama and seek legal counsel.

The accuracy of the information contained here is not guaranteed for legal purposes. Alterations may occur on a regular basis. To get the most recent information available please contact the Property Tax Commissioner’s Office at (205)384-7267.  If you need further information, the Code of Alabama Title 401, Article 7, 40-10-180 through 40-10-200 or Act 2018-577 can be found at https://www.sos.alabama.gov/government-records/legislative-acts.