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 I Am the Winning Bidder at a Tax Sale, Now What?

You just got congratulated as the winning bidder at a tax sale. However, you don’t own a new property yet.  There are myriad steps which need to be accomplished before you can own a property by being a winning bidder at a tax sale. 

If you have more specific questions about the process after winning bidding at a tax sale, you may contact a Maryland tax lien attorney to comprehensively answer your queries. Nonetheless, below are some of the basic matters to remember upon being the winning bidder at a tax sale.

After the Tax Sale

When you win a bid at a tax sale, there will be fees you have to pay upon winning: 

  • Pending tax amount
  • Penalties
  • Accrued interest
  • Other expenses associated with the sale

Once you pay all of these fees, you will be issued a certificate of sale. However, it’s worth noting that you will not have full ownership of the property instantly. This is because homeowners in Maryland possess the right to redeem their properties after being auctioned for tax delinquency. 

Certificate of Sale

A certificate of sale provides that the tax lien certificate was sold to you, the amount bid, the date of sale, the amount advertised, and the annual interest rate. Remember that the certificate becomes void two years from the date stated in the certificate of sale unless you move to foreclose the owner’s right to redeem.  

Redemption After the Sale

The laws and statutes in Maryland state that a person whose property was sold at a tax sale may file for the redemption of such property within six months. This is otherwise known as the redemption or waiting period. However, before the owner can retrieve the property, they must pay the total amount, including the other expenses you have paid after the sale. This will include the amount spent for sending the owner notices and attorney’s fees. 

If the owner fails to pay the amounts enumerated, you can foreclose their right of redemption and own the property for good. However, you have to send them at least two notices before doing so. These notices should be timely spaced apart. If they still fail to pay after several notices, and the waiting period has passed, then the property is all yours. 

It should be noted by the redeemer that the longer they wait to pay the redemption fee, the higher the costs will be. These fees will all be due to the bidder, not the jurisdiction of Maryland. 

Talk to a Lawyer

If you have more questions about the foreclosure and redemption proceedings that could affect your ownership of the property, contact LewisMcDaniels to discuss possible remedies and the necessary steps for securing the property. There are legal procedures to take to ensure that you are the property’s rightful owner, and an attorney can help you navigate these easily. Contact us today!

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