Alabama agents: learn who may claim tax-sale excess, how redemption works, key deadlines, unclaimed funds, and what remains unclear.
| Foreclosure type | Gray area. We didn't find a clear official answer on whether Alabama uses judicial or non-judicial foreclosure. We didn't find who runs the sale spelled out in the state code or on official sites. Treat it as a gray area. |
| Mortgage surplus | Section 35-11-211 gives certain lienholders rights in excess proceeds after foreclosure of a prior mortgage or lien. Other details, including who holds the funds and the claim process, aren't spelled out in the official sources we checked. (Ala. Code § 35-11-211) |
| Tax sale surplus | For tax sales, excess may go to a person or entity that properly redeemed the property and gives proof to the county commission. Other rules apply to certain sales and claim periods. Ala. Code § 40-10-28. |
| Deadlines | A three-year period applies to initial claims. For sales in 2014, 2015, and 2016 or later, qualifying claims may be paid after three years, up to 12, 11, or 10 years, respectively. For sales from August 1, 2013, through June 30, 2014, a rule allows payment to a proven redeemer within 10 years. Ala. Code § 40-10-28; Alabama Admin. Code r. 810-4-1-.24. |
| If no one claims it | For 2014 and later sales, funds and interest become county property if required proof is not received by the applicable deadline. Surplus from certain tax lien foreclosure auctions is subject to state unclaimed-property law. Ala. Code § 40-10-28. |
| Fees and agreements | Gray area. We didn't find official rules on fee caps, waiting periods, agreement rules, disclosures, or registration for recovery helpers. |
| Third parties | We didn't find a clear official answer on whether agents may file claims. Treat it as a gray area. |
Checked against the official state code and government office pages in November 2026.
Alabama law sets rules for tax-sale excess, including who may claim and when. The details depend on the sale date and type. Other surplus questions aren't spelled out in the official sources we checked. Check the current rule before contacting an owner or offering help.
Until the property is redeemed, tax-sale excess is held in a separate county treasury account during the three-year period. The county commission may retain interest earned on the funds. Ala. Code § 40-10-28.
For tax sales on or after August 1, 2013, and before July 1, 2014, the county redemption official prepares a Certificate of Pending Redemption after receiving the redemption costs, less the excess funds. The official submits it to the County Commission. The commission issues an Excess Funds Voucher, which the official accepts in place of the excess funds to complete the redemption. Alabama Admin. Code r. 810-4-1-.24(3)(a)-(b).
For those sales, a tax-sale purchaser may receive the excess and interest after proper redemption, but must surrender the certificate of assignment first. The rule also allows the county commission to order payment to a person or entity that proves proper redemption within 10 years after the sale. Alabama Admin. Code r. 810-4-1-.24(4)(a), (5).
A 2024 law sets additional claim rules for tax sales. Within three years, excess goes to a person or entity that properly redeemed the property, if proof is presented to the county commission. After three years, for covered sales, eligible claimants include a person entitled to redeem with a circuit court order, an owner at the time of sale or a later owner who documents a negotiated redemption, and an owner who records a release and waiver. Ala. Code § 40-10-28(a)-(b).
For 2014 sales covered by § 40-10-28, qualifying claims may be paid up to 12 years after the sale. For 2015 sales, the limit is 11 years. For 2016 and later sales, it is 10 years. For sales from August 1, 2013, through June 30, 2014, the rule allows payment to a person or entity that proves proper redemption within 10 years. If required proof is not received by the applicable deadline under § 40-10-28, the funds and interest become county property. Ala. Code § 40-10-28(b)-(c); Alabama Admin. Code r. 810-4-1-.24(5).
A separate rule applies to surplus from auctions in tax lien foreclosure actions. Alabama law on unclaimed property held by the state applies to that surplus. The 2024 law applies to tax liens for which no final foreclosure and quiet title judgment had been entered by October 1, 2024. Alabama HB 270 (2024), § 1(h)(7), § 2.
After a prior mortgage or lien is foreclosed, § 35-11-211 gives a mechanic, materialman, or other person with a lien under § 35-11-210 rights in excess proceeds received by the foreclosing lienholder, as provided by law. (Ala. Code § 35-11-211). We didn't find official rules on who otherwise holds mortgage-surplus funds, how to claim them, or a deadline. Treat those details as gray areas.
For tax sales, a person or entity that properly redeemed the property may receive excess after presenting proof to the county commission within three years. For certain sales, other people may qualify after three years if they meet the law's requirements. Ala. Code § 40-10-28(a)-(b).
For tax sales on or after August 1, 2013, and before July 1, 2014, the tax-sale purchaser may receive excess and interest after proper redemption and surrender of the assignment certificate. The county commission may also order payment to a person or entity that proves proper redemption. Alabama Admin. Code r. 810-4-1-.24(4)(a)-(c).
After foreclosure of a prior mortgage or lien, a mechanic, materialman, or other person with a lien under § 35-11-210 has rights in excess proceeds received by the foreclosing lienholder, as provided by law. (Ala. Code § 35-11-211). For foreclosure sales, we didn't find whether a recovery agent, assignee, power-of-attorney holder, or attorney may submit a claim for someone else spelled out in the state code or on official sites. Treat it as a gray area.
For tax sales, excess is held during the three-year period. If no qualifying claim is made within three years, the law allows later claims for certain sales. The deadline is 12 years for 2014 sales, 11 years for 2015 sales, and 10 years for 2016 and later sales. For sales from August 1, 2013, through June 30, 2014, the rule allows payment to a person or entity that proves proper redemption within 10 years. If required proof is not received by the applicable deadline under § 40-10-28, the funds and interest become county property. Ala. Code § 40-10-28(b)-(c); Alabama Admin. Code r. 810-4-1-.24(5).
For tax sales on or after August 1, 2013, and before July 1, 2014, Rule 810-4-1-.24 also describes redemption and payment procedures. Confirm the rule that applies to the sale date before treating a lead as claimable. Alabama Admin. Code r. 810-4-1-.24.
We didn't find a mortgage-surplus deadline spelled out in the state code or on official sites. Treat it as a gray area.
We didn't find fee caps or specific rules for recovery agreements spelled out in the state code or on official sites. Treat them as a gray area. We also didn't find whether agents may file claims spelled out in the state code or on official sites. Treat it as a gray area. Confirm the current requirements before making promises or signing an agreement with an owner.
These claims can involve people who've lost property. A clear, respectful explanation can make a hard conversation easier.
I've been recovering surplus funds since 2013. That's over 2,000 cases and more than $100 million recovered for foreclosure victims across the country. These claims can be stressful for families, so a patient, clear conversation matters. Start by confirming the current rule with the office that holds the money.
If you want to learn how this business actually works, join the free Surplus Funds Masterclass at surplusfunds.ai, or join the free Surplus Funds Collective community on Skool at skool.com/surplusfunds.
This guide is education, not legal advice. Laws change, so check the official statute and talk to a licensed attorney in your state before you act.
Alfred walks through the entire framework live: vetted leads, deal math, the legal process, and real cases. Free to attend. Nothing to buy to get value out of it.