Update – see 201
1 Howard County Tax Sale
Howard County has announced the date of the 2010 tax sale. The date will be May 24th 2010. Howard County traditionally has run their tax sale as a live auction and it appears that this year will be no different. A tax auction is for a tax lien certificate, which give you the right to collect interest on the taxes due and ultimately foreclose if the taxes are not paid. For more information go to the Howard County website tax sale section.
Howard County will have an information session about their tax sale on May 13th 2010. Click this link for a PDF flyer about their informational session.
Good luck and don’t bid too much,
Ned
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13 responses so far ↓
1 Sire (53 comments.) // Mar 31, 2010 at 3:14 am
So I take it that the person buying is gambling that they don’t pay their taxes so that they can foreclose when it’s not paid? I’m sort of wondering how much they stand to lose if the taxes are paid?
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2 Ned // Mar 31, 2010 at 11:43 am
Sire,
The tax lien holder essentially takes the place of the government. They get to collect the taxes and interest and they can foreclose if the taxes aren’t paid. SOme people do this to collect the interest, in Howard county it is 18%!!! Some do this hoping to get the property.
I bid mainly on vacant boarded up properties hoping that it is abandoned and that I will be able to take over the property. My goal is to get properties very cheaply, but I really don’t want to be kicking old ladies out of their home.
3 Sire (53 comments.) // Apr 1, 2010 at 1:48 am
That makes sense. Why doesn’t the Government just take over themselves rather than auctioning it out?
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4 Ned // Apr 1, 2010 at 1:21 pm
Sire,
In some states they do that. The state takes over the property then they auction off a “Tax Deed.”
In Maryland, if the house is foreclosed by the tax lien holder, the amount of the original tax lien bid above and beyond the taxes due, goes to the owner of the property.
I think the real reason is the city or county wants the money NOW, not a few years latter when they can take over the property and resell it.
5 Sire (53 comments.) // Apr 1, 2010 at 6:28 pm
Yep, local councils and government are all about now aren’t they. I remember when I had to pay a huge tax bill, through the Tax department changing the tax law and backdating it catching a whole lot of us in the net, and asked if I could pay in installments and they asked if I had a house. I replied in the affirmative and they suggested I sell it to pay off my debt, so I was forced to take out a loan.
Needless to say there was a class action taken against the tax office which we won several years later and all monies was refunded.
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6 Ned // Apr 1, 2010 at 11:04 pm
I think I just read about that on another blog where you left a comment. There was a law suit you were in and I was wondering if you had written about it.
7 Sire (53 comments.) // Apr 1, 2010 at 11:38 pm
Nope, although it seems I’ve commented on it more than once 😀
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8 Ned // Apr 1, 2010 at 11:44 pm
By the way anyone reading along and following these comments should check out Sire’s blog. If you are interested in blogging, making money online, or just a good joke check out http://wassupblog.com/ or his other blog http://www.loadofbullshit.com/
9 Sire (53 comments.) // Apr 2, 2010 at 12:05 am
Hey Ned, that wasn’t necessary, but it was much appreciated. Thanks mate.
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10 Amy (1 comments.) // Apr 23, 2010 at 4:54 am
I think I just read about that on another blog where you left a comment. There was a law suit you were in and I was wondering if you had written about it.
11 Ned // Apr 27, 2010 at 2:43 pm
I am not sure what you are referring too. I may have written about a law suit. I write about things regarding the law and rel estate regularly.
12 Mike Habib (1 comments.) // Jul 23, 2010 at 3:08 pm
Tax Liens are effective for a period of ten years and are generally self-releasing after that period unless refiled by the IRS in which case, it shall be effective for another 10 years.
13 Ned // Jul 27, 2010 at 12:11 am
Mike,
The tax liens I am talking about in this post are property tax liens. They are valid for two years in MD.