Lower Eastern Shore, Maryland Tax Sale Foreclosures

In Maryland, when property taxes are not paid, the county or municipality will auction off a tax lien certificate—not the property itself—at a public tax sale. The certificate purchaser pays the delinquent taxes and, in return, receives a “Certificate of Sale”, giving the purchaser the right to collect repayment from the property owner. A tax sale foreclosure is the legal process that allows the purchaser of a tax lien certificate to become the owner of the property if the taxes remain unpaid.

The property owner still has the right to “redeem” the property by paying back the overdue taxes, interest, and certain expenses within a set period of time. If the owner does not redeem within that time, the certificate holder may file a foreclosure action in the Circuit Court to extinguish the owner’s redemption rights and obtain clear title to the property.

Tax sale foreclosures can be a complicated process, with strict statutory notice requirements and multiple procedural steps. Our firm has experience handling these cases across all counties in Maryland. We ensure every step is properly completed so that clear title can be conveyed to the tax lien purchaser, while also keeping you fully informed of the progress. 

The length of a Maryland tax sale foreclosure depends on many factors, but it typically takes six months to a year from the time the foreclosure complaint is filed in Circuit Court. The process is not quick, because the law requires that specific notices be sent to the property owner, mortgage holders, and other interested parties, and each step carries waiting periods designed to protect the owner’s right of redemption.

If the property owner pays the taxes, interest, and costs before the court enters judgment, the case will be dismissed and the certificate holder will be reimbursed. If redemption does not occur, the court can ultimately enter a judgment foreclosing the owner’s rights and transferring title to the certificate holder.

Because every case involves strict notice and timing requirements—and sometimes delays if owners contest the action—our firm’s role is to keep the process moving forward, make sure all statutory steps are met, and keep you informed along the way.

Yes. If the property owner redeems the property, Maryland law allows you to be reimbursed for certain expenses you paid in connection with the foreclosure process. These reimbursements typically include:

• Recording costsfor the certificate of sale
• Title search fee(capped at $250; if an update is required more than 6 months later, an additional $75 may be reimbursable)
• Service of process fees, including multiple attempts if necessary
• Postage and certified mailing costsfor required statutory notices
• Court filing feescharged by the Circuit Court
• Reasonable attorney’s fees, capped at $500 if the case is redeemed before filing, and up to $1,500 if an affidavit of compliance has been filed and foreclosure litigation has begun

These amounts are added to the redemption total the property owner must pay, meaning you should be made generally whole for most of your direct expenses. However, costs outside those specifically permitted by law may not be reimbursed, so it’s important to manage the process carefully.

In Maryland, a tax lien purchaser must wait a minimum period after the tax sale before filing a foreclosure action. The law provides:

• Pre-filing notice:As early as 4 months after the tax sale, the certificate holder may send the required statutory notices to the property owner and other interested parties.
• Filing the complaint:A foreclosure complaint may be filed after 6 monthsfrom the date of the tax sale for most properties, or after 9 monthsif the property is owner-occupied.
• Expiration of certificate:If a foreclosure complaint is not filed within 2 yearsof the certificate’s issuance, the tax lien certificate expires and becomes void.

Because of these timelines and notice requirements, it is important to act promptly and work with counsel to ensure that all statutory steps are met.