Alabama Tax Lien Auction Overview
This article and the information contained is subject to change. Please be sure to review the rules of each auction prior to placing any bids. Alabama counties who have opted to conduct their delinquent tax sale by use of the "tax lien" method now have the ability to 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 dates and times of each county’s auction, please visit, http://www.govease.com/auctions
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 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 simply click the following link Alabama Getting Registered. All auction dates (opening registration, prebidding, and live bidding) are determined by each individual 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.
At the county tax office's request, you MUST make payment arrangements with the County Revenue Commissioner's Office, at 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
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.
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 For more in-depth training on the bidding processes, GovEase offers tutorial videos for each step in the process. Please visit https://govease.helpscoutdocs.com/ to access these videos. Should you have additional questions, our support team is here to help.
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. The winning bidder is notified on the auction screen.
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. This bid can be placed once the county has opened prebidding. These dates differ by county. Please visit http://govease.com/auctions for more information on auction dates.
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.