Alabama Tax Lien Auction Overview
This article and the information contained within are subject to change. Please be sure to review the rules of each auction before placing any bids. Alabama counties that have opted to conduct their delinquent tax sale using the "tax lien" method now can conduct such sales in an "online" format. These auctions will begin at a time given by the individual county tax office and will be conducted in a "Bid Down" format.
Interest rates for these auctions will begin at 12%, and the bid with the lowest interest rate will win. All auctions will begin and end each day at times designated by the county tax office and will continue the following business day until each parcel has been offered at auction. 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. For more information on the dates and times of each county’s auction, please visit http://www.govease.com/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 are interested in before making any bids.
Registration Requirements
Before bidding, all new bidders must create a bidder profile through the GovEase Auction Portal ( www.govease.com). Once you have created a bidder profile, you can then "add auctions" for each county in which you wish to bid. For more detailed information on bidder registration, please visit our Help Center or click the following link Alabama Getting Registered. All auction dates (opening registration, pre-bidding, and live bidding) are determined by each county tax office in compliance with the applicable Alabama Code. No registrations will be accepted prior to these dates.
Bidders will be required to electronically submit county-specific registration documents to the county via the GovEase Auction Portal. These forms will be provided to the bidder during the online registration process.
You MUST make payment arrangements with the County Revenue Commissioner's Office, per the county tax office's request. Each county may have different registration requirements. Please click the following link to view the contact information for making such arrangements: Alabama County Contact Information
For most counties, ALL payments and payment arrangements MUST be made through the county tax office. Click here to find a list of counties for which payments can be made through the GovEase Auction Portal. 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. If the county is handling payments and approvals, bidders must make payment arrangements with the county tax office to get approved for bidding. GovEase does not grant this approval. Approval is granted through the county tax office.
Training
More in-depth registration and bidding training videos will be posted to assist with any questions potential bidders may have. These videos will be found on the "Tax Sale Bidder Help" section of the GovEase website. Click " Support by State" to find training information organized by state. For more in-depth training on the bidding processes, GovEase offers tutorial videos for each step in the process. For Alabama, please visit our Alabama Tax Auction Training page to access these videos. Should you have additional questions, our support team is here to help at 769-208-5050 Option 2 or support@govease.com
Bid Interest for the Auction
Alabama Tax Lien Auctions are conducted in an "interest rate bid down" fashion, meaning the bid you place is the lowest interest per annum you are willing to accept on the face value amount (taxes, interest, fees, and charges).
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. For a tie at any rate higher than 0%, the winning bidder will be whoever placed their bid first. The winning bidder is notified in real-time on the auction screen.
Pre-bidding
Pre-bidding allows bidders the convenience of reviewing properties and selecting the minimum interest rate they are willing to bid on a property at the live auction. This bid can be placed once the county has opened pre-bidding and will carry into the live auction. These dates differ by county. Please visit http://govease.com/auctions for more information on auction dates.
Redemption of Liens
If the property owner 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.