The Maryland Department of Assessments and Taxation recently announced that the Baltimore City tax sale will take place on Monday, May 15th. Designated county personnel have sent delinquent notices to involved parties, and participants can now bid on unredeemed properties.
Whether you owe the city real property taxes or are interested in bidding, we highly recommend working with a reliable Maryland tax lien attorney. After all, tax sales are complex procedures that require detailed knowledge of local laws.
This blog aims to educate readers about tax sales and the role a Maryland tax sale attorney plays in the process. Read on to learn more about the process for Baltimore transactions.
What Is a Tax Sale?
A tax sale is a government-enforced real estate sale resulting from an owner’s delinquent property tax payments. These are the two tax sale types:
- Tax deed sale: This term means selling a property during an auction, including unpaid taxes.
- Tax lien sale: While a tax deed sale sells a particular property, a tax lien sale sells the liens to an interested buyer who may afterward pursue the collection of monies owed.
In both instances, the government grants owners a right-of-redemption period, where they may pay off their tax debt to reclaim their property. However, note that every state implements different tax sale laws. For this reason, if you want to participate in Baltimore City’s sale, it’s best to work with a trusted Maryland tax lien attorney.
Baltimore City Process
Below is a quick step-by-step guide on how Baltimore City tax sales work.
- The city mails property owners their tax bill every year on July 1st.
- These bills are due upon issuance, and there are corresponding penalties for late payments.
- Property owners who fail to pay their taxes by the end of the year will receive a final bill by February of the following year, with a penalty of $750 plus monthly interest.
- If owners still cannot pay by this time, the city auctions their tax debt to investors during the annual sale.
- For every sale, the highest bidder can buy a property owner’s debt or “tax certificate” and start charging 12% annual interest.
- Owners can save their properties by paying investors $750, accrued interest fees, and legal expenses.
- Owners who still cannot pay their debt by July 1st will incur another year’s worth of property taxes.
- Should owners fail to pay their debt after nine months, investors can file a lawsuit to foreclose their properties. By this time, the best remedy to avoid losing any property is to pay investors the owed amount in full.
- If owners cannot produce enough money, they will lose their properties and all corresponding equity to investors.
Find a Reliable Maryland Tax Sale Attorney Today
Are you participating in the Baltimore City tax sale as a property owner or investor? If you are, it’s time to find a reliable Maryland tax lien attorney, like those at LewisMcDaniels.
At LewisMcDaniels, we have legal experts who handle tax lien and tax sale-related transactions. We have helped countless individuals navigate the complex sale system in the state for many years, and we look forward to doing the same for you.
Call (301) 818-0405 now for a free, no-obligation consultation.