[MD, November 2023] – Winning a tax lien at an auction is a significant investment opportunity, providing individuals with the chance to acquire properties with unpaid property taxes. However, the road to maximizing this investment is paved with crucial steps that must be followed diligently. Failure to do so may result in serious consequences, including the loss of property rights and forfeiture of the lien.

Steps to Take After Winning a Tax Lien

1. Make a Full Payment of the Bid Amount

The journey begins with the prompt payment of the winning bid amount. The new tax lien holder is required to pay the full amount to the county or Baltimore City government. This payment, typically made on the auction day, includes any accumulated interests and costs related to the property.

2. Conduct Research on the Property

Over the next four months post-tax sale, thorough due diligence is paramount. Utilizing public records, state land records, or online state taxation real property data searches is recommended. A Maryland tax sale attorney can provide valuable assistance during this crucial phase. Read more:
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3. Wait for the Redemption Period

In Maryland, homeowners have a six-month redemption period during which they can reclaim their property by paying delinquent taxes, interest, and fees. Tax lien auction winners must refrain from making any changes or improvements to the property during this period. The longer homeowners wait to pay, the more interest accrues.

4. Send a Formal Notification

After the redemption period, the tax lien holder is responsible for notifying the property owner and interested parties about the tax sale. This formal notification should include details about the sale, the redemption amount, and the deadline for redemption.

5. File a Complaint To Foreclose the Right of Redemption

If the homeowner does not redeem within the stipulated time, the tax lien holder can file a complaint to foreclose the right of redemption in court. In Baltimore City, this redemption period can extend to nine months. The complaint initiates a legal process to obtain a final judgment from the court confirming the property's ownership.

6. Obtain a Deed to the Property

Following the court's judgment and the successful foreclosure of the right of redemption, the tax lien holder can obtain a tax deed to the property. This legal document provides undisputed ownership and is recorded in the county land records.

Consult a Trusted Tax Sale Attorney

To navigate these intricate post-auction processes successfully, it is highly advisable to consult with an experienced and trusted Maryland tax sale attorney. LewisMcDaniels, a team of legal experts, is ready to guide investors through each step, ensuring the proper execution of procedures and maximizing the potential returns on tax lien investments.

https://lewismcdaniels.com/