Purchasing property at a tax sale can be an enticing opportunity, whether you’re eyeing a new home or a lucrative investment. However, navigating tax sales in Maryland can be complex and fraught with potential pitfalls. To help you understand the intricacies and determine whether you should hire an attorney, our seasoned Maryland tax lien attorneys at LewisMcDaniels have compiled this comprehensive guide in case you want to purchase a tax sale property in Maryland.
Understanding Tax Sales in Maryland
What is a Tax Sale?
In Maryland, when property taxes and other liens go unpaid, each county has the authority to auction off the lien on the property. This event is known as a tax sale, and the property lien is awarded to the highest bidder. As the purchaser, you must pay the owed taxes and liens, which may include a “high bid premium” if your bid surpasses a certain percentage of the property’s assessed value.
The Foreclosure Process
After purchasing a tax lien, there is a mandatory waiting period before you can initiate foreclosure – typically, a foreclosure cannot be filed for at least six months post-sale. Following this period, it can take an additional six months to a year, sometimes longer, to fulfill all notice and service requirements, obtain a tax sale judgment, and ultimately secure the property title. It’s important to note that before a judgment is rendered, any interested party can redeem the property at any time by paying the owed taxes and liens.
Do You Need an Attorney as a Tax Sale Purchaser?
First-Time Buyers and Legal Considerations
If you are purchasing property at a tax sale for the first time, you may have many questions, particularly about legal fees and the complexity of the process. Hiring a Maryland tax sale attorney can be a prudent decision for several reasons:
Evaluating Property Suitability
Engaging in a tax sale involves a detailed and often lengthy process. It’s crucial to ensure that the property you are considering aligns with your investment goals. Depending on the specific tax lien, a property might not be suitable for your needs. Our experienced Maryland tax sale attorneys can assist you in evaluating critical factors to make an informed decision.
Narrowing Down Property Options
Once you have a list of potential properties, our team can assist you in conducting thorough due diligence on each option. We will help you narrow down your choices to those that present the best investment opportunities. Our attorneys will guide you through each step, ensuring you secure the title to the properties you select.
Navigating the Foreclosure Process
One of the most challenging aspects of tax sales is the post-purchase process of handling lien certificates. This procedure is time-consuming and complex, best managed by a knowledgeable Maryland tax sale attorney. By allowing our experts to handle the foreclosure process, you can save considerable time and effort while avoiding costly mistakes.
Legal Compliance and Risk Mitigation
Tax sales are governed by specific laws and regulations that must be meticulously followed. Any misstep can result in significant financial loss or legal complications. Our attorneys at LewisMcDaniels are well-versed in Maryland’s tax sale laws and can ensure full compliance, mitigating risks and safeguarding your investment.
Post-Foreclosure Assistance
After successfully acquiring a property through a tax sale, there may still be legal and administrative tasks to complete. Our attorneys provide post-foreclosure support, assisting with any remaining legal matters, title issues, or disputes that may arise.
Contact Our Experienced Lawyers at LewisMcDaniels Today
Navigating a tax sale property in Maryland without legal assistance can be daunting and risky. At LewisMcDaniels, we pride ourselves on being the leading Maryland tax lien attorneys, equipped with the expertise and experience to guide you through each step of the process. Contact us today at 301-818-0405 to consult with an expert and secure your investment with confidence.
