Buying property at a tax sale auction can be a smart move — and a high-yielding one, at that. However, with the recent developments surrounding property interest rates and tax sale exemptions, particularly in Baltimore, you would do well to be aware of the potential ramifications.
The next tax sale auction in Baltimore is only a few months away, at the time of writing. If you are adding a tax lien property to your list of assets, read on.
Learn more about the recent tax sale exemption and what it might mean for your investment.
What Is a Tax Sale Auction?
A tax sale auction is simply an event where liens properties of tax-delinquent property owners are placed on sale. By delinquent, we mean property owners who have gone a long period not paying the right property taxes to the city.
Under the law, the city has a right to reclaim the property and put it up for sale. Those who purchase a property from a tax sale auction can buy it for a percentage of its fair market value.
When Is the Next Tax Sale Auction?
Baltimore city has set the next tax sale auction to take place sometime in the second quarter of 2022. More specifically, the 2022 tax sale auction will be held on May 16, 2022. This is roughly a month and a week before the filing of real estate taxes in the city, which is July 1.
What Is a Tax Sale Exemption in Baltimore?
Last February 10, 2022, Mayor Brandon Scott announced a tax sale exemption program. The tax sale exemption program allows homeowners to retain possession of their properties despite failing to pay property taxes during the last fiscal year.
To be eligible, applicants for the program need to have properties valued at less than $250,000. As well, applicants need to have resided in the property for at least fifteen years. In addition, eligibility requires any of the following:
- An annual income of $36,000 or less
- 65 years of age
- Living off social security benefits like the Federal Social Security Disability Program
How a Tax Sale Exemption Will Affect the Tax Sale Auction
The tax sale exemption program can potentially allow many homeowners to keep their properties. For this reason, one way the program can affect the tax sale auction is by allowing lesser properties to be up for sale.
With tax lien properties in relative scarcity, competition will be fierce.
Show Up at the Next Tax Sale Auction Informed and Represented
The recent announcement of the tax sale exemption can engender more developments and implications — most of which you need to prepare for. For legal counsel on property liens, trust a Maryland tax lien attorney who knows his way around the state’s property laws.
Get your next tax sale property at a great value with counsel from a Maryland tax sale attorney. Get in touch with us now and see how we can help.
