Alabama Tax Lien Auction Overview
This article and the information contained is subject to change. We are excited to announce that the Mobile County, Shelby County, and Elmore County Alabama Tax Lien Auction will be conducted online with GovEase. There might be more counties added here shortly. Currently, the online auction date for Shelby County is set for April 1st, 2020 at 10:00 AM Central Time. Also, Mobile County is set for May 4th, 2020 at 8:00 AM - 5:00 PM Central Time. If there are more parcels to be auctioned off, the sale we start where it left off the following morning. Before reading this article, it is important to remember that it is the bidder's responsibility to fully understand how tax lien auctions work in Alabama. GovEase does not give any legal advice with Tax Lien Auctions.
Tax Lien Auction
With tax lien auctions you are not purchasing the property but you are purchasing a tax lien against the property. Your Certificate of Purchase will entitle you to make subsequent payments of delinquent taxes pursuant to Alabama Code 40-10-191. You are encouraged to investigate and research any parcel you have interest in prior to making any bids.
Prior to bidding, all new bidders must create an account online through the GovEase Auction Portal ( www.govease.com). Registration will begin March 20th, 2020 for Mobile County and registration will open for Shelby County starting March 25th, 2020. No registrations will be accepted until that time. Bidders will be required to complete a basic information form, and must complete a W-9 form. These forms will be provided to the bidder during the online registration process. The county tax office reserves the right to require other documents to register, should they deem necessary.
In order to be approved as a bidder, you MUST make payment arrangements with the County Revenue Commissioner's Office, at the county tax office's request. Each county may have different requirements. Alabama County Contact Information
No payments will be made to, or through GovEase. GovEase will facilitate the auction online, but ALL payments and payment arrangements MUST be made through the county tax office. Bidders will be able to verify and monitor their approval status by use of the "My Registrations" link on their GovEase account.
Registration and Getting Approved to Bid Summary:
1. Bidders will create an account and register online with GovEase at the set registration dates.
2. During registration, bidders will be required to complete certain documents, one of which is a W-9 form.
3. Payment arrangements MUST be made prior to any bidding or being approved as a bidder, GovEase does not grant this approval. Approval is granted through the county tax office. ** As of right now to get ahold of Mobile County, you can email them at https://www.mobilecopropertytax.com/email-us/ they should reach back out to you with anything they need. As of right now, they will be reaching out to all bidders that have already registered as of March 27th.**
More in-depth registration training videos will be posted to assist with any questions potential bidders may have. These videos will be found on the "HELP" section of the GovEase website then click "HELP DOCS". Online webinar training will also be available starting around registration time at this link http://govease.com/help.
Bid Interest for the Auction
With Tax Lien Auctions in Alabama, you are not bidding a premium but instead, you are bidding on the interest per annum you are willing to accept on the face value amount (taxes, interest, fees, and charges). This will be conducted in a bid down fashion.
Pre-bidding will begin Saturday, May 2, 2020 (Subject to Change). Pre-bidding allows bidders the convenience of reviewing properties and selecting the minimum interest rate they are willing to bid on a property at live auction.
The maximum bid is 12% simple interest per annum prorated monthly. The lowest acceptable bid is 0% per annum. Bidding can be in 1% increments. The winner is determined by the lowest interest bid placed. If there is a tie at 0%, a random number generator will select the winner. The winning bidder is notified on the auction screen.
Redemption of Liens
If the owner of the property redeems the certificate of purchase on the property, the investor receives his money back plus interest at the rate he/she bid at the auction.