The Howard County Tax Sale is a crucial event for both the county and real estate investors, offering the opportunity to purchase tax liens on properties with delinquent taxes, water and sewer bills, or other outstanding liens. The 2025 tax sale will be held in May and conducted online. This guide will provide you with essential details on how the tax sale works, registration requirements, and legal considerations.
Understanding the Howard County Tax Sale Process
Howard County holds one tax sale per year, and participation in the auction does not grant immediate property ownership. Instead, winning bidders purchase a tax lien certificate, which allows them to collect interest on their investment. If the property owner does not redeem the lien by paying the owed taxes within the legally allowed redemption period, the lienholder may initiate foreclosure proceedings.
The county issues tax sale notices around March 1 to all property owners with delinquent bills. These properties are then advertised for at least four weeks in the Howard County Times / Columbia Flier and listed online. Since property owners can pay their outstanding taxes up until the date of the sale, the number of properties available at auction may change.
Tax Sale Registration Requirements
All bidders must register online. Registration for the 2025 tax sale opens on April 14, 2025, and closes on April 28, 2025. Late registrations will not be accepted, so prospective bidders should complete the process well before the deadline.
To register, bidders must provide their name, address, telephone number, email, and banking information for payment processing. A $1,000 deposit via ACH debit is required at registration. This deposit is fully refundable if the bidder does not purchase any tax lien certificates during the auction.
The auction itself follows a sealed-bid process, meaning investors submit their highest bid on a tax certificate. The initial bid price includes all outstanding taxes, interest, penalties, and expenses of sale. If multiple identical bids are submitted for the same property, the one submitted first will be awarded the certificate.
How a Lawyer Can Help with the Howard County Tax Sale
Investing in tax liens can be profitable, but it also involves legal complexities. Consulting with an attorney before, during, and after the tax sale can help investors avoid costly mistakes and maximize their returns.
- Conducting Property Research & Title Searches
Not all tax lien properties make good investments. A lawyer can help review title records, identify outstanding liens, and check for zoning or legal issues that could affect future ownership or development. - Ensuring Compliance with Howard County’s Auction Rules
The county’s tax sale process follows strict regulations under Maryland law (Title 14, Subtitle 8 of the Tax-Property Article). A lawyer can ensure that investors follow the proper steps, complete the necessary paperwork, and avoid registration or payment issues that could disqualify them from the sale. - Handling Redemption and Foreclosure
Property owners have a six-month redemption period to repay their taxes and reclaim their property. If the lien is not redeemed, the investor may initiate foreclosure proceedings. Legal assistance is crucial to navigating this process and securing ownership rights.
3 Tips for Success in the Howard County Tax Sale
Start Researching Early. The final list of tax sale properties is made available in advance, giving investors time to evaluate potential purchases. Reviewing this list, conducting title searches, and assessing property conditions are essential steps before bidding.
Understand the Budget and High-Bid Premium. Bidders must submit a budget covering their expected purchases. If a winning bid exceeds 40% of a property’s assessed value, the investor must also pay a 20% high-bid premium on the excess amount. This premium is refundable only if the lien is redeemed or foreclosure proceedings are initiated.
Know the Foreclosure Timeline. In Maryland, foreclosure on a tax lien must begin within two years of purchase, or the lien certificate becomes void. Investors should work with a lawyer to ensure all legal requirements are met within the correct timeframe.
Secure Your Investment with Expert Legal Guidance
The Howard County 2025 Tax Sale provides excellent opportunities for investors, but it also involves legal and financial risks. At LewisMcDaniels, we specialize in assisting tax sale investors with due diligence, auction compliance, foreclosure proceedings, and risk management.
If you plan to participate in the Howard County Tax Sale, let us help you protect your investment and maximize your returns. Contact LewisMcDaniels today at www.lewismcdaniels.com to schedule a consultation and receive expert legal guidance for your tax sale investments.
