Our attorneys and staff work hard to ensure that each of our clients receives a tailored experience based on their specific legal–and practical–needs.

 Bidding on Tax Liens in Maryland

Bidding on tax liens is a fast-growing area of real estate investing. Instead of bidding to own or purchasing a real estate property, investors just bid for tax lien certificates; this promises generous returns and gives the investors’ portfolios exposure to real estate, even without technically owning a property.

For newcomers to the field who would like to join in on this lucrative corner of the market, we will discuss how tax lien bidding works and what newcomers must do to ensure success in this venture.

What You Need to Know About Tax Lien Bidding in Maryland

Tax liens are legal claims that the government places on real estate or other assets when the owner is past due property tax debts. This legal claim will lead to the creation of a tax lien certificate, which the government sells to investors through an auction. The tax lien certificate contains vital information regarding the homeowner’s property tax debt, including the amount due, interests, and penalties.

The winning bidder of a tax lien certificate will take over control of the property and gain the power to collect payment from the homeowner, which includes the amount of the initial payment and interest rates.

What if the Homeowner Fails to Make Payments?

If the homeowner fails to make payment, after a certain period of time, the investor can initiate the foreclosure process. The good thing is this scenario rarely happens; it’s more likely that you recuperate your initial investment and earn interest rather than being responsible for initiating foreclosure.

Is Tax Lien Investing Worth It?

Investors earn through tax lien investing via interest rate returns. In Maryland, interest can be anywhere between 6% and 20%, depending on which county the property is located; this gives the investor a consistent rate of return.

It’s possible to win bids for a tax lien certificate for just a few hundred dollars, giving you an easy way to start your career as an investor. What’s more, it’s a good way to diversify your portfolio as long as you purchase tax lien certificates of different properties located in different areas.

Tax lien investing, however, also comes with some risks. The best thing you can do is seek guidance and advice from an experienced Maryland tax sale attorney, who can help you turn this venture into a success.

LewisMcDaniels: Best Tax Sale Attorney Frederick, Maryland

Get in touch with an experienced tax sale attorney to guarantee that your tax lien bidding and investing will be a success. Our best-in-class tax sale attorneys will help you understand all your options and maximize the profits you generate from your tax liens. From providing redemption process assistance to handling court proceedings, our esteemed lawyers at LewisMcDaniels can guarantee that you will efficiently navigate the complex process of this fast-growing market.

LewisMcDaniels have already handled thousands of tax lien cases, and we are now ready to be of service to you. For any questions about tax lien bidding and other Maryland tax lien issues, please contact LewisMcDaniels through our contact form or by calling us at 301-818-0405.

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