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Our attorneys and staff work hard to ensure that each of our clients receives a tailored experience based on their specific legal–and practical–needs.

 What Is A Tax Lien?

Despite the relatively uncertain financial climate created by 2020, the number of homes lost due to tax lien foreclosures and ‘tax sales’ decreased in the State of Maryland. As 2021 rolls in, only time will tell whether this trend holds or not. Maryland’s General Assembly’s decision in 2015 to increase the arrearage threshold from $250 to $750 plays a major role in this decrease.

Some suggest that the practice of tax sales is unjust and that it should be stopped as it worsens income inequities, impacting many individuals permanently.  On the other hand, many proponents of tax sales argue that tax sales are the only way local jurisdictions can raise revenue in order to provide much needed services to citizens. But what is a tax lien? Can tax lien attorneys in Maryland help tax lien investors and homeowners facing tax sale?

In this article, you’ll learn more about what a tax lien is and how tax lien attorneys can help you better understand the process from all angles.

What Are Tax Liens?

Think of tax liens as collateral kept by the government until you pay outstanding tax obligations. Tax liens are usually filed by a governmental body on your property. This can include real estate, any financial asset you may have, or personal property.

Before 2015, the local jurisdictions in the State of Maryland would file a tax lien if the amount owed was $250 or more but that was subsequently increased to $750 or more. Although tax liens are a matter of public record, the same does not reflect in your credit report.

Here is a general overview of the timeline you should expect, i.e., when an ‘overdue’ turns into a lien.

DateProperty of Tax
1st JulyOrdinary tax – payable without any interests or fines
1st OctoberTax becomes delinquent (arrears) under the annual payment schedule
1st OctoberUnder the semi-annual payment schedule, the first installment becomes an arrear
1st JanuaryThe second installment becomes an arrear. Interest accrues at the rate of one and two-third percent, or any other as determined by the IRS. Interest shall be applicable until paid

Unpaid taxes up to this point then constitute a lien. A notice will be served once a week for 4 successive weeks, telling property owners that the property is to be sold. An advertising fee of $30 is also going to be included in the final amount payable. In Maryland, the final update on any tax sale will occur at 4:30 pm, the Friday before the sale. If your property is on the list, buyers can buy it in an auction.

What Can Tax Lien Attorneys in Maryland Do?

Maryland tax lien attorneys can help homeowners and investors alike.  In particular, an experienced tax lien attorney can help investors who have purchased a tax lien certificate:

  • Initiate the pre-foreclosure process by providing all legally required notices
  • Initiate the foreclosure process by filing a Complaint and all necessary exhibits
  • Finalize the foreclosure process by filing all necessary motions.
  • Negotiate with homeowners regarding property redemption.

Ab experienced tax lien attorney in Maryland can help homeowners:

  • Understand their rights related to tax liens
  • Understand the tax lien and tax lien foreclosure process
  • Redeem their property to prevent foreclosure

Experienced Maryland Tax Lien Attorneys

Each case is different and so, it is advisable that individuals consult their attorneys the moment they get involved with the tax lien process. Tax lien attorneys such as those at LewisMcDaniels have years of experience helping people and businesses deal with their tax liens and other legal issues.  If you’re investing in tax liens, it’s imperative that you seek legal representation from an experienced tax lien attorney to protect your rights and your investment.  Get in touch with us today by either sending a secure message via our website or by calling: 301-818-0405.

There are no obligations, no compulsions; our tax lien attorneys will simply go through your case and give you advice based on years of successful experience!

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