Once a tax lien is bought at an annual tax sale, it may face foreclosure until the time that the property has been “redeemed”. In the industry, the term redemption refers to the elimination or release of the tax lien that encumbers the property. While this might sound intimidating, our team of Maryland tax sale attorneys has compiled everything you need to know on tax sale redemption rights.
What is a Tax Sale?
When you fail to pay for real estate taxes, the laws in Maryland provide every county with the chance to sell such unpaid accounts at a tax sale auction. Tax sales usually occur around six months after taxes are due. For example, if the property’s taxes were due in June of 2020, then the tax sale auction should take place around December of the same year.
What are the Redemption Rights in a Maryland Tax Sale?
An owner can still redeem their property after a tax sale, but they must first pay the taxes and fees owed related to the property. This ability to redeem will be available until the court legally blocks (forecloses the right of redemption) the original owner from the chance to pay back the taxes on the property.
If your property has a mortgage on it, much of the time, the lender will pay the taxes so they avoid losing their interest in the property. However, if you wish to redeem the property, you will be required to pay every outstanding tax, along with any applicable penalties, interests, charges, and statutory legal fees that can be reimbursed.
What Happens If No One Pays for the Taxes?
There may be times when no one will come forward to pay for the outstanding fees and taxes. In cases like this, the winning bidder can file a lawsuit in the Circuit Court which could lead to the owner of the property to losing their right to redeem and ultimately losing their interest in the property.
If the property isn’t redeemed, then the tax sale buyer will need to go through to court, local tax office, and local land records to obtain title. Laws in Maryland give highly specific procedures as well as time frames, which need to be followed. The purchaser will need to wait for at least six months in order to file this kind of proceeding. In addition, an investor who waits right until the end of the statute of limitations might find themselves unable to complete the purchase since the law has a specific set of notices that need to be served first.
LewisMcDaniels is Your Maryland Tax Sale Attorney
If you’re looking for a Maryland tax lien attorney, you can count on our team to provide you with the support you need. We’re here to help you file a complaint and help you towards your right to redemption. Our team is comprised of professional Maryland tax sale attorneys that can help. To get started with your complaint, send us a secure message via our website.