Property Tax Liens In Maryland
Property Tax Liens In Maryland only have a redemption period of six months.
Maryland actually sells you the right to foreclose on the property within a certain time period rather than actually place a lien on the property. Thus, these are referred to as tax lien certificates.
It’s an overbid state which means that you run a higher risk because you’ll often have to put a high percentage of the properties value into your bid.
Fortunately however, Maryland has a mechanism where you actually only have to front a percentage of the amount you bid at the auction depending on the assessed value and what you bid.
Maryland is a good state to buy tax liens because of the high interest rates and it has less competition than other auctions.
Maryland is a lien state. Interest rates can vary greatly among its 24 counties.
The redemption period is 6 months.
Premium is bid, but you are not required to pay the entire premium amount unless the lien is not redeemed.
You must pay the premium, however, in order to foreclose the right of redemption.
Each county in Maryland has its own rules regarding tax sales. You will have to learn the procedures in your county of interest. In addition, to some wildly varying procedures among the various counties individual cities also conduct tax lien sales.
Also, many counties and cities conduct their tax sales online. Again, with varying procedures.
Certain counties also group their properties up for sale.
Some counties utilize the premium bid method. And others allow the bidding up the price for a lien or group of liens, your bid consists of the percent of assessed value that you are willing to pay.
Generally, you will receive a Certificate of Sale six months after the sale. This is if the property owner has not redeemed his or her property. This certificate will be null and void two years from the date of sale if you have no instituted an action for foreclosure.
Again, the counties in Maryland almost operate as different states when it comes to tax sales. You will have to learn your individual county or city.