Maryland tax sales are auctions where interested purchasers bid on liens on a property. Liens are in some ways like mortgages but the result after a property owner fails to pay any property taxes, charges, or debts.
If you are interested in purchasing any liens on properties listed up for auction, be prepared to go through a complicated system involving a lot of paperwork. You may need specific certifications depending on your county or the type of property in a tax sale.
Maryland tax sale attorneys are experts in navigating a tax sale auction. These professionals can help walk you through the different processes in purchasing property at a tax sale. Here is a closer look into the things you need to prepare for a tax sale auction in Maryland.
Tax sales in Maryland are public auctions. Be sure to check the schedule to see when each county is hosting it. If there is no date listed, this will be updated later, so make sure to check back with it so you can make the sale.
Note that the COVID-19 pandemic caused some counties to reschedule their tax sales. You can contact your local tax collector for more information as it becomes available.
You will be paying for the tax lien on a property, not the entire property itself. How much a tax lien costs will depend on the property owner’s unpaid taxes. Remember that other people may be interested in purchasing a tax lien on a property. Tax lien certificates will go to the highest bidder.
Having a tax lien certificate does not mean you purchased the property. Think of it as getting some rights to the property. Original property owners can still redeem the property at any time before foreclosure. In other words, they can pay off their debts within a specific timeframe to keep their home.
Purchasers can foreclose an original property owner’s right to redeem their property up for auction. Once they take this action, they can get the title to the property. However, foreclosure involves time-consuming processes that require significant effort, from communicating with tax collectors to giving notice to homeowners. Purchasers can seek experts to handle the requirements and secure their ownership of the property in a tax sale.
Preparing for a tax sale auction in Maryland involves complicated processes, namely ensuring you have all the necessary documents to buy property. Remember that you are only purchasing a tax lien when going to a public auction, meaning you will not yet get the entire property even if you are the highest bidder.
Expect to coordinate with county officials, homeowners, and local courts to ensure you get the title to the property up for auction. You will need to provide specific documents to officials and give notice to homeowners involved, which can be challenging when all you want is to invest in a new property.
Consider getting in touch with a seasoned Maryland tax lien attorney to help you prepare for a tax sale auction. Our Maryland tax sale lawyers at LewisMcDaniels are ready to navigate the complicated system on your behalf. Allow us to help you get the best property that meets your needs.