Grab a 12% Yearly Gain – Baltimore County – Maryland Tax Lien Investing
If you’re looking for a unique investment opportunity, Baltimore County’s annual tax lien sale might be just what you need. With the potential for a 12% return on investment, this event offers a chance to invest in properties with unpaid taxes. Let’s dive into how you can get started and what to expect.
Understanding Tax Lien Certificates
When property owners in Baltimore County fail to pay their property taxes, the county can place a lien on the property and sell this lien at an auction. As an investor, you can purchase these liens, effectively paying off the property owner’s taxes. If the owner redeems the property, you earn back your investment plus interest. If they don’t, you can eventually foreclose on the property.
Example
Year 1: You purchase a tax lien for $5,000 with a 12% interest rate. If the owner redeems the property within a year, you earn $600 in interest.
Year 2: The property remains unredeemed. You file for foreclosure, potentially acquiring the property itself.
Steps to Start Tax Lien Investing
1. Research and Understand Local Laws
Knowing the legal framework is crucial. In Baltimore County, the tax sale process is governed by the Tax-Property Article of the Annotated Code of Maryland.
Payment due within 90 days post-judgment includes sale amount, interest, penalties, and fees
Interest Rate
12% per annum
Bid Procedure
Online auction with a $100 registration fee, high bid premium applies
Deposit
Payment due within 90 days post-judgment, includes sale amount, interest, penalties, and fees
Pro Tips
Mark Your Calendar: Listings go live online in early May. Register early to avoid missing out.
Prepare for Fees: There are additional costs like a $25 postage fee in March, a $50 advertising fee in May, and a $15 legal fee on the sale day.
Know the Process: After winning a bid, you must pay the full amount plus any high bid premium (20% on amounts over 40% of the property’s assessed value).
If you have questions or need help navigating tax lien investing, don’t hesitate to book a call or explore our free resources for more insights. Feel free to leave a comment or reach out with any questions below!
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Learn how to get 18-36% returns on your investment and buy property for as little as $500 with tax lien and tax deeds.
Lien Sales Annually Oct – Nov. Deed Sales Are Held on a Needed Basis and Only on Properties That Were Not Sold at Lien Sale and Were Held by the County for 18 Months
10% Penalty if Redeemed in 1st 6 Months, 15% Penalty if Redeemed in Months 6-12, but Only on the Taxes and Fees Not the Overbid. Overbid Amount Receives 5% Interest.
Redemption Period:
1 Year if Sold at County Sale, Liens Not Sold at County Sale Are Certified to Commissioner and Sold in “Commissioner’s Certificate Sale” With 120 Day Redemption Period
Online Auction:
Yes
Over the Counter:
No but There Is a Second Auction Called a Commissioners Certificate Auction With a Shorter Redemption Period of 120 Days
25% Penalty Per 6 Months for Non Homestead or Special Land Use Properties. If 2 Yr Redemption Period Applies 25% for 1st Year and 50% Penalty for 2nd Year
Redemption Period:
6 Months for Most Properties. 2 Years for Homestead and Special Land Use Properties
Online Auction:
The Vast Majority No, but in 2019, Two Counties (Victoria & Orange)
“Upset Sale” First With Premium Bidding Which Does Not Extinguish Other Liens, Followed by “Judicial Sale” Where All Liens With the Exception of Irs Liens Are Extinguished
Frequency:
Annually Throughout the Year. Upset Sales Typically Held in the Fall. Judicial Sale Typically in the Spring but Could Be Anytime After the Upset Sale.
Interest Rate / Penalty:
N/A
Redemption Period:
N/A
Online Auction:
Very Few
Over the Counter:
Yes Through “Repository” List With County Acceptance
Baltimore County
Grab a 12% Yearly Gain – Baltimore County – Maryland Tax Lien Investing
If you’re looking for a unique investment opportunity, Baltimore County’s annual tax lien sale might be just what you need. With the potential for a 12% return on investment, this event offers a chance to invest in properties with unpaid taxes. Let’s dive into how you can get started and what to expect.
Understanding Tax Lien Certificates
When property owners in Baltimore County fail to pay their property taxes, the county can place a lien on the property and sell this lien at an auction. As an investor, you can purchase these liens, effectively paying off the property owner’s taxes. If the owner redeems the property, you earn back your investment plus interest. If they don’t, you can eventually foreclose on the property.
Example
Steps to Start Tax Lien Investing
1. Research and Understand Local Laws
Knowing the legal framework is crucial. In Baltimore County, the tax sale process is governed by the Tax-Property Article of the Annotated Code of Maryland.
2. Visit the Local Treasurer’s Website
Check the Baltimore County Department of Budget and Finance website for details on tax sales: Baltimore County Tax Sale Information.
3. Check the Auction Site
The auction is conducted online. Registration details and auction dates are available here: Baltimore County Auction Site
4. Read the Details About Tax Liens
Understanding the schedule, parcel inquiry, and sale specifics is essential. Details will be posted online by early May.
5. Contact the County Office
For additional inquiries, contact:
Important Details
Pro Tips
Useful Links
Frequently Asked Questions
Q: What happens if the property owner redeems the property?
A: If the property owner pays off the owed taxes plus interest, you get your initial investment back plus the 12% interest.
Q: What is the high bid premium?
A: The auction applies a 20% high bid premium to amounts exceeding 40% of the property’s assessed value on successful bids.
Q: Can I make partial payments on my bid?
A: No, you must pay the full amount due within 90 days post-judgment.
For more details, visit the Baltimore County Tax Sale Website.
Need A Hand?
If you have questions or need help navigating tax lien investing, don’t hesitate to book a call or explore our free resources for more insights. Feel free to leave a comment or reach out with any questions below!
Sign up or log in to view the full content.
Join Us
Learn how to get 18-36% returns on your investment and buy property for as little as $500 with tax lien and tax deeds.