I am trying to get an understanding of the tax sale process…
GOOD LUCK, I have been doing this for years and years and STILL do not understand some of the things that happen.(LOL)
I believe Maryland is a tax lien certificate state…
Did not bother to look this up but if so Gold River is giving you good advice. You get NO OWNERSHIP right at all until it matures to you.
Doesn’t the homeowner have due process rights to be given notice of the sale, any outstanding taxes owed and the right of redemption before selling his property?.
ONE of the TRICKIEST and least understood areas of the business. I suggest you google Jones Vs Flowers and read the SCOTUS decision that the AR Courts said was OK …and…the SCOTUS said NO. Took just over SEVEN years. DUE PROCESS MUST BE DONE.
What determines the price of the property at the tax sale? If the mortgage is wiped out, does the homeowner get the surplus?..
Whatever is bid for the tax lien or certificate is the determining price in MOST states…the Mortgage and all liens, EXCEPT IRS, can/may/will be WIPED from title. They are not wiped out…they just become unsecured loans.
AND…in some states even though you got the tax lien/certificate…you may still have to go through foreclosure…and…anyone interested can bid for the property at the foreclousre sale.
The IRS will have a 120 Right of Redemption if they are a junior lien…NO MATTER what!
Isn’t the tax lien holder required to give the homeowner a release letter to redeem the property after the homeowner reimburses the holder for expenses incurred?..
NO, if the property is deeded to you and you lose it, you will hve to deed it back in order to clear the chain of title
HOWEVER if you go to “Quiet Title” and the homeowner shows up…OR…has not been PROPERLY NOTIFIED…you may/will lose the propertyback to them depending on the circumstances. (See Above)
It is my understanding the homeowner has the right to redeem his property.
In a tax lien state the homeowner has the right to redeem up until the lien matures…BE CAREFUL…READ Jones Vs Flowers…Have seen cases where all the I’s were dotted, all the T’s crosssed, EVERYTHING done according to the statutes…and…the judge still gave the property back to the owner. The courts DO NOT like to take proerty for simple mistakes such as failing to pay the taxes.
AND: In most tax deed states there is a right of redemption period.
AND…As Gold River said…MAKE NO $$$ expenditres on the property until you are ABSOLUTELY certain you have cleared title and it is yours. The $$$ ain’t gonna come back!
This is NOT a get rich quick real estate business. Like all other aspects of real estate it is fraught with problem areas…Investigate…BEFORE…you invest. Get education…LEARN what you are getting into. The water can be rather deep…quickly.