BaltimoreCity MD - RealTaxLien

City of Baltimore, Maryland

Business Rules

 2024 Tax Lien Sale

TAX SALE BUSINESS RULES

The City has established the following business rules, governing certain aspects of the Tax Sale and ancillary processes. These rules are consistent with the authority granted to the City under the Annotated Code of Maryland Tax-Property Article, 14-817(4), to set the terms of the Tax Sale.

a.     Timely Notification by Tax Lien Certificate Holder of Legal and Other Expenses

i.         Tax Lien Certificate Holders are required to provide the City with a means of notification, either an e-mail address or facsimile telephone number, where they can be reached to facilitate the redemption of Tax Lien Certificates. The address of record must be kept current, with the City receiving timely notification from the Tax Lien Certificate Holder of any change in the manner by which they are to be notified. This information should be initially provided by completing the bidder registration screen on the https://baltimorecity.marylandtaxsale.com/ web site. Any subsequent changes to this information shall be provided to the City as a request to change the Holder notification address. For e-mail, the request should be sent as an e-mail request to Tammy.Hollie@BaltimoreCity.gov, or for facsimile notification by faxing the request to the Baltimore City Tax Sale Office at 410-837-6994.

ii.         The Tax Sale Office will not assess or collect any fees before or after filing a complaint to foreclose the rights of redemption. The Tax Lien Certificate Holder must collect any fees and provide a legal fee release to the Tax Sale Office. The release must be submitted on legal letterhead stationery and include at least the amount of attorneys fees, the amount of title search fees, and any other costs. All correspondence in this regard shall be sent to the Tax Sale staff by e-mail or at:

Wolman Municipal Building
200 Holliday Street, Room 1
Baltimore, Maryland 21202

If the Tax Lien Certificate Holder fails to respond to the City’s contact in a timely and/or satisfactory manner, the City may, at its sole discretion, elect to complete the redemption on behalf of the party in interest without the inclusion of legal and other allowable fees incurred by the Holder. After the City provides notice of redemption to the Holder, any additional action taken or additional fees or expenses incurred by the Holder shall be at its own expense. The redeeming party still must pay the City directly for all liens plus interest and any applicable subsequent taxes.

iii.         Upon filing a complaint to foreclose the rights of redemption, additional fees may be applicable six months for non-owner-occupied properties and nine months for owner-occupied residential properties from the date of the tax sale or sooner if there is a substantial repair order.

Proof of payment of the fees to the Tax Sale Office must include a Release under affidavit that contains an itemized list of the fees paid by the redeeming party, the address of the properties, the date of filing the foreclosure, and the applicable foreclosure case number. If the case number cannot be immediately obtained, proof to the Tax Sale Office must include an affidavit from the attorney stating that a Complaint to Foreclose the Right of Redemption has been filed, the address of the properties, the date of filing, and the initial fee associated with the filing.

iv.         The City defines owner-occupied residential property as property coded as H or D by the Maryland State Department of Assessments and Taxation (SDAT) on January 1st of the year before the date of the tax sale. That coded designation will be published online by the City and shall remain associated with the property for all purposes related to that tax sale, including notices, foreclosure filing dates, dates for adding fees and costs, and redemptions. It shall remain unchanged for all purposes for that tax sale, regardless of errors or subsequent changes in the coding by SDAT.

b.     Return of Tax Lien Certificates:

When the property is redeemed prior to issuing the Tax Lien Certificate, the Tax Lien Certificate Holder will automatically receive a refund check from the City for the Lien amount and all applicable interest and costs. If the Tax Lien Certificate has been issued to the Holder, the Certificate must be returned to the City before the refund is issued. Failure to return the Tax Lien Certificate to the City will result in withholding of the refund of the lien amount and all applicable interest and costs until the Certificate has been returned to the City.

c.      Tax Sale Voids:

The City shall return the lien amount to the Tax Lien Certificate Holder but shall pay no interest, attorneys fees, costs, or other charges in connection with any Tax Lien Certificate voided subsequent to award. Reasons for declaring tax lien certificates void shall include but are not limited to the following: lien previously paid, lien the result of an incorrect or erroneous assessment, lien barred by law from being placed in the tax sale, open-active bankruptcy cases, open-active foreclosure cases, and lien resulting from clerical errors affecting the validity of the tax sale.

d.     Judgments:

If a Tax Lien Certificate Holder obtains a judgment foreclosing the owners right of redemption and subsequently decides to allow redemption, the liens, redemption interest and attorney fees will be paid directly to the tax sale purchaser or to its attorney. Subsequent real property taxes, if applicable, will then be paid to the City to complete redemption.

e.       Water:

In accordance with the provisions of Annotated Code of Maryland Tax-Property Article, 14-849.1, the City is prohibited from enforcing certain water and sewer liens in tax sale. This restriction does not prevent the City from exercising other rights or remedies for the collection of water and sewer charges. To record any tax sale deed, all accrued water and sewer charges attributed to the relevant property must be paid incident to recordation of a deed and prior to transfer of title.

Baltimore City Tax Sale will be conducted in accordance with the provisions of the Annotated Code of Maryland, Tax-Property Article, Section 14-817 “Sale at Public Auction”. The Collector will establish a high bid premium to be applied to all properties to be sold at the Tax Sale as defined under Section 14-817. Please refer to the table of the High Bid Premium Calculation Example shown below.

High Bid Premium Calculation Example:

Summary of Important Information

Frequently Asked Questions

A Tax Lien Certificate Sale is a public sale of lien interests on properties. The sale is used as a method to collect delinquent real estate taxes and/or other unpaid municipal fees and charges owed to the City of Baltimore all of which are liens against the real property address. The Mayor and City Council of Baltimore generally holds this sale once each year in May. The winning bidder does not purchase the deed to the property, but purchases a Tax Lien Certificate. In order to acquire the deed, the law requires the purchaser to file a Complaint in the Circuit Court for Baltimore City to foreclose the right of redemption. The foreclosure procedure includes obtaining a decree from the Circuit Court for Baltimore City, preparing a deed, paying all liens that have accrued from the date of the Tax Lien Certificate Sale, paying any excess funds (bid amount less lien amounts less high bid premium if applicable), and recording the deed in the Land Records of Baltimore City.
 

1. Who is responsible to pay taxes?
2. When do real estate property taxes become delinquent?
3. Will there be additional interest or penalty?
4. Are delinquent taxes advertised?
5. What is a Tax Lien Certificate?
6. Is my property scheduled for a Tax Lien Certificate Sale?
7. Why wasn’t I notified of the Tax Lien Certificate Sale? Can I get copies of what was sent?
8. The notice states that you are going to sell my property. What does that mean?
9. What delinquent charges qualify a property for a Tax Lien Certificate Sale?
10. What can I do to keep my property from going into a Tax Lien Certificate Sale?
11. Can I stop the property from going into a Tax Lien Certificate Sale by paying half of the bill?
12. Once my property goes to a Tax Lien Certificate Sale, will I still own it?
13. How do I redeem my property after the Tax Lien Certificate Sale?
14. Are there any other expenses in addition to the cost of the lien for which I will be responsible?
15. What is the bidding process?
16. Do I have to register as a bidder if I wish to bid on the purchase of tax lien certificates in the Citys Tax Lien Certificate Sale or Assignment Sale?
17. What do I do if I forget my password?
18. When are my bids due?
19. What is a Batch?
20. What equipment or software do I need to be able to participate?
21. Is there a tutorial for the use of the Internet Tax Sale System?
22. What is a High Bid Premium and how is it calculated?
23. How often is the web site updated to reflect the current lien values?
24. How are bidders required to make payment to the City for Tax Lien Certificates awarded as a result of the Tax Liens Certificate Sale?
25. What is an ACH Debit?
26. Is the $100.00 registration fee subtracted from the amount of liens due?
27. What type of document is issued at the Tax Lien Certificate Sale?
28. What if there are no bids?
29. Can the Tax Lien Certificate be assigned over-the-counter directly from the City? Can I get a list of these liens? Can I assign them after the sale?
30. What are the Risks with Tax Lien Certificate Sales?
31. What is an assignment? What is the difference between assignment and Redemption?
32. How are Tax Lien Certificates redeemed?
33. If my Tax Lien Certificate expires before I can file foreclosure on the property, do I get my money back?
34. What are the procedures for filing a foreclosure and how long does this process take? Will the City of Baltimore handle the foreclosure process for a fee?  If so, what is the fee?
35. Subsequent to redemption of the Tax Lien Certificate, how does the Tax Lien Certificate Holder receive the money?
36. What if the Property is not redeemed?
37. What is the life of a Tax Lien Certificate?
38. When can the homeowner redeem his/her property out of the Tax Lien Certificate Sale?
39. How can I get a current list of Tax Delinquencies? Can I be placed on your mailing list for future mailings? Is there a charge for this list?
40. How can I get a copy of the statutes regarding the Tax Lien Certificate Sale in your jurisdiction?
41. Can a Tax Lien Certificate be voided?

1. Who is responsible to pay taxes?
Property owners. Every owner of record of real property must pay real estate property taxes on that property. Real estate property taxes on rental properties are the responsibility of the property owner. If there is a mortgage on the property, it is the responsibility of the property owner to send or deliver the real estate property tax bill to the bank, building association or other lending institution. Some, but not all, mortgage companies pay the real estate property tax bills. Only when, as a condition of the loan, an escrow account is established does the mortgage company pay the real estate property tax bill. Real estate property taxes are due and payable every year even if there is no mortgage due on the property.
 
2. When do real estate property taxes become delinquent?
Real estate property taxes are due and payable on July 1st and become delinquent October 1st each year. Under the Annual Payment Schedule, real estate property taxes become delinquent as of October 1st. Under the Semiannual Payment Schedule, the first installment becomes delinquent as of October 1st, while the second installment becomes delinquent as of January 1st. Failure to receive a real estate property tax bill will not relieve the owner of the requirement to pay the taxes or subsequent penalties imposed as of October 1st or January 1st should the taxes become delinquent.
 
3. Will there be additional interest or penalty?
Yes. Penalty and interest will be assessed on all delinquent real estate property taxes at the rate of 1% interest per month or fraction thereof on the State portion of the bill and 2% per month (1% interest and 1% penalty) or fraction thereof on the City portion of the bill until the bill is paid in full.
 
4. Are delinquent taxes advertised?
Yes. At least thirty (30) days before any property is 1st advertised for sale, the Collector must mail a Final Bill and Legal Notice to the property owner(s) of record. An alphabetical list of all properties with delinquent real estate property taxes or other municipal liens is published at least 2 times, once per week, in alternate weeks, in newspapers of general circulation. The list is also posted on the City’s website four weeks prior to the Tax Lien Certificate Sale. The advertisement specifies the website, date and time that the on-line sale will be conducted and gives instructions on how to access the Baltimore City's website. The advertisement also notifies the public that some of the properties may be subject to a special Bulk Sale held later in the year. Advertising fees are added to the delinquent liens included in the advertisement.
 
5. What is a Tax Lien Certificate?
A Tax Lien Certificate is a negotiable instrument sold by the City at the Tax Lien Certificate Sale. The Tax Lien Certificate is evidence that the Tax Lien Certificate Holder has purchased an enforceable lien against the real property at 12% per annum redemption interest for owner occupied residences and 18% per annum redemption interest for non-owner occupied properties. The minimum bid necessary to purchase a Tax Lien Certificate is listed beside each delinquent parcel in the advertisement and includes gross tax, penalties and interest including any applicable costs pertaining to the Tax Lien Certificate Sale.
 
6. Is my property scheduled for a Tax Lien Certificate Sale?
To find out if a property is scheduled for a Tax Lien Certificate Sale, please contact the Tax Sale Office at 410-396-3987 and select option #1, or go to https://baltimorecity.marylandtaxsale.com.

      
7. Why wasn't I notified of the Tax Lien Certificate Sale?  Can I get copies of what was sent?
A Final Bill and Legal Notice is mailed in February to all property owners of record, to the address provided by the property owner and contained in the Baltimore City Real Estate Property records. The property is advertised in at least two newspapers of general circulation and also advertised on the Baltimore City website. A copy of the Final Bill and Legal Notice can be provided to the homeowner by contacting the Tax Sale Office at 410-396-3987 and selecting option #1.
 
8. The notice states that you are going to sell my property.  What does that mean?
The statement refers to the unpaid real estate property taxes and/or other unpaid municipal fees and charges owed to the City of Baltimore, all of which are liens against the real property address. Participants in the Tax Lien Certificate Sale can bid and purchase the Tax Lien Certificate, which means they actually pay the outstanding bills to Baltimore City on behalf of the property owner. The Tax Lien Certificate Holder does not purchase the deed to the property, and cannot acquire the deed unless the Circuit Court for Baltimore City grants a Right to Foreclose the Right of Redemption (of the homeowner). The foreclosure procedure includes obtaining a decree from the Circuit Court for Baltimore City, preparing a deed, paying all liens that have accrued from the date of the Tax Lien Certificate Sale, and recording the deed in the Land Records for Baltimore City.
 
9. What delinquent charges qualify a property for a Tax Lien Certificate Sale?
A property shall be scheduled for a Tax Lien Certificate Sale for any municipal liens with a combined value totaling $250.00 or more for non-owner-occupied properties and $750.00 or more for owner-occupied residential properties.  These liens include but are not limited to Real Property Taxes, Special Benefits Assessments, Alley and Footway Paving Bills, Streetscape, Minor Privilege, Multi-Family Dwelling, Clean and Board, Water, Environmental Control, and Residential Registration charges and fees.  Residential water bills can no longer go to tax sale.  Also, a property cannot be scheduled for tax sale if an Alley Paving lien is the only delinquent bill. However, the property owner will receive a Final Bill and Legal Notice indicating possible legal action.  Environmental Control Board citations can go into tax sale by themselves if the total balance of all citations issued on a property after September of 2014 was $1,000.00 or more and all the appeals have been exhausted.

10. What can I do to keep my property from going into a Tax Lien Certificate Sale?
Paying all outstanding delinquent charges and any applicable costs at any time on or before April 30, 2024, can stop the Tax Lien Certificate Sale process.

11. Can I stop property from going into a Tax Lien Certificate Sale by paying half of the bill?
No. Under the law partial payments cannot forestall a property from the Tax Lien Certificate Sale. All outstanding delinquent charges and any applicable costs must be paid to stop the Tax Lien Certificate Sale process. The only exception in this regard is for Footway Paving bill when an approved payment agreement is in place.
 
12. Once my property goes to a Tax Lien Certificate Sale, will I still own it?
The property owner maintains ownership of the property and has the right to redeem until a Circuit Court judge signs a Decree to Foreclose the Right of Redemption (of the homeowner).
 
13. How do I redeem my property after the Tax Lien Certificate Sale?
The City's redemption procedure is governed by and in conformance with the Annotated Code of Maryland, Tax Property Article 14-828(3); A Tax Lien Certificate Holder has no right to possession of the property until a deed is acquired. Pursuant to the Annotated Code of Maryland, Tax-Property Article 14-828, when the property is redeemed, the person redeeming shall pay to the Collector the following:

1. The total amount of the liens paid at the Tax Lien Certificate Sale including 12% per annum redemption interest on owner occupied residences and 18% per annum redemption interest on non-owner occupied properties.
2. All current taxes (on non -owner occupied properties only) together with any interest and penalties on those taxes, and
3. Any actual expenses or legal fees allowed pursuant to Tax-Property 14-843.

14. Are there other expenses in addition to the liens for which I will be responsible?
Yes. There is 12% per annum redemption interest applied to the lien amount on owner occupied residences and 18% per annum redemption interest on non-owner occupied properties when redeeming the property. If the property is certified by the Mayor and City Council as requiring substantial repairs, the tax sale purchaser may after 60 days from the date of the sale file a complaint to foreclose the rights of redemption. Immediately after the sale, the owner may be responsible for additional cost including the cost of the substantial repair certificate, attorney's fees, title search and other expenses. If the owner of the property or a party with an interest in the property has not redeemed within 4 months from the date of the Tax Lien Certificate Sale on non-owner-occupied properties, the Tax Lien Certificate Holder is entitled to attorneys and  title search fees and certified mail and postage costs as provided by law.  The Tax Sale Certificate Holder is entitled to the same fees and costs 7 months from the date of the Tax Lien Certificate Sale on owner-occupied residential properties.  If the property has not been redeemed within 6 months from the date of the Tax Lien Certificate Sale, the Tax Lien Certificate Holder may file a Complaint to Foreclose the Right of Redemption on non-owner-occupied properties. On owner-occupied residential properties, the Tax Lien Certificate Holder may file a Complaint to Foreclose the Right of Redemption if not redeemed within 9 months from the date of the Tax Lien Certificate Sale.  The foreclosure procedure includes obtaining a decree from the Circuit Court for Baltimore City, preparing a deed, paying all liens that have accrued from the date of the Tax Lien Certificate Sale, and recording the deed in the Land Records for Baltimore City. In conformance with the Annotated Code of Maryland, Tax Property Article 14-843, the Tax Lien Certificate Holder is entitled to only the fees and costs incurred and include the following:

1. Applicable fees and costs if the property is certified as in need of substantial repairs -
   1. Costs of substantial repair certificate,
   2. Reasonable attorney's fees not to exceed $500.00,
   3. Title search fees not to exceed $250.00, and
   4. Certified mailing and postage costs.
2. Four months after the tax sale on non-owner-occupied properties and seven months after the tax sale on owner-occupied residential real estate.
   1. Costs of recording certificate of sale,
   2. Reasonable attorney's fees not to exceed $500.00,
   3. Title search fees not to exceed $250.00, and
   4. Certified mailing and postage costs.
3. Six months after the tax sale on non-owner-occupied residential properties and nine months after the tax sale on owner-occupied residential properties if a foreclosure proceeding was filed in the Circuit Court -
   1. Reasonable attorneys fees of $1,300.00 if an affidavit of compliance has not been filed and $1,500.00 if it has been filed, 
   2. Reasonable attorneys fees not to exceed $1,200.00 for opening an estate,
   3. Additional attorneys fees if approved by the Court, and
   4. Title search fees, service of process fees, publication fees, posting fees, postage and certified mail fees, and other fees if approved by the Court.

15. What is the bidding process?
Bidding starts with the lien amount due at the time of the Tax Lien Certificate Sale. The lien amount is the sum of delinquent amounts owed to the City of Baltimore plus expenses incurred in making the sale. The Tax Lien Certificate Sale lien is awarded to the bidder who submits the highest Bid Amount, that is, the amount they would be required to pay to the property owner as part of a foreclosure proceeding. All properties sold at the Tax Lien Certificate Sale may be subject to a High Bid Premium.
 
16. Do I have to register as a bidder if I wish to bid in the City's Tax Lien Certificate Sale or Assignment Sale?
Yes. Bidder Registration is required to make the sale of tax lien certificates proceed in an orderly and expeditious manner, and to provide the City with better record keeping ability. Registration begins on Wednesday, March 13th, 2024, and must be completed online at https://baltimorecity.marylandtaxsale.com. All bidders must pay a $100.00 non-refundable registration fee in order to participate in the tax sale.  Registration is not complete until the applicant receives a bidder number.  No one will be permitted to register after registration ends on Friday, May 10th, 2024 at 4:00 PM ET.
 
17. What do I do if I forget my password?
Please be careful to remember your password, as it is the key to your access to the web site. If, however, you forget your password, it may be recovered easily by clicking on the "Forgot your password?" link on the home page. When you provide your matching personal information, a new temporary password will be sent to your registered email address. This password will need to be changed after your next login.
 
18. When are my bids due?
Bidders will not be able to submit bids until Friday, May 17th, 2024 at 8:00 AM ET. The advertised list will be divided into 8 batches, which will close hourly beginning Monday, May 20th, 2024 at 9:00 AM ET.  Bids can be withdrawn or altered at any point up to the closing of the Batch on the day of the sale.  The advertised list will be available for review on the web site beginning Wednesday, March 13th, 2024.
 
19. What is a Batch?
A Batch is a subgroup of the Advertised List that serves as a means of organizing tax certificates for the purpose of facilitating bid submission. Batches are offered and the bids entered as of that time accepted on each hour between 9:00 a.m. and 4:00 p.m. on the date of the Tax Lien Certificate Sale (05/20/2024). Each Tax Lien Certificate in each Batch is offered independently of every other Tax Lien Certificate. The Tax Lien Certificates are arranged in sequential order.
 
20. What equipment or software do I need to be able to participate?
In order to use the auction web site you need an Internet connection and modern web browser with JavaScript and cookies enabled.
 

Many people choose one of the following freely available browsers:

• Google Chrome
• Mozilla Firefox

 
21. Is there a tutorial for the use of the Internet Tax Sale System?
Bidders are encouraged to view the auction demo site https://demo.marylandtaxsale.com prior to bidding.

22. What is a High Bid Premium and how is it calculated?
The Tax Lien Certificate Sale auction will be held using the High Bid Premium method as provided for in the Annotated Code of Maryland, Tax Property Article 14-817(b)(2).  The High Bid Premium is calculated on the amount of the Bid Amount that exceeds the threshold: either 40% of the property's Assessed Value or the property's Lien Value (whichever is greater). In Baltimore City the high-bid premium shall be 20% of the amount by which the highest bid exceeds the greater of a.) the lien amount; or b.) 40% of the property's full cash value (note the full cash value is the assessed value).  The High Bid Premium is to be paid on the date of the sale along with all taxes and other municipal liens, interest and penalties, and all costs incurred in the Tax Lien Certificate Sale. In accordance with State law no interest is paid to the Tax Lien Certificate Holder on the High Bid Premium. The Collector will refund the High Bid Premium, without interest, to the holder of the Tax Lien Certificate on redemption of the property or to the Plaintiff in an action to foreclose the right of redemption on delivery of the deed for the property for which the Tax Lien Certificate was issued. The High Bid Premium is not refunded until or unless the property is redeemed or the deed is delivered subsequent to an action to foreclose the right of redemption.  Here is an example:

Assessed Value of the Property: $10,000.00
40% of Assessed Value is: $4,000.00
Lien Amount is: $200.00
Bid Amount of: $6,000.00
The Bid Amount Exceeds 40% of the Assessed Value by: $2,000.00
The High Bid Premium: $400.00 (20% x $2,000.00 = $400.00)
Total Amount Due at Sale: $ 600.00 (High Bid Premium plus Lien amount)

The balance of the bid price is the amount of the bid ($6,000.00) less the amount paid at the sale ($600.00) or $5,400.00. The balance of the bid price is the amount that is subsequently paid to the property owner for the property once the deed is processed and all subsequent charges have been paid.

In the above example, the property is valued at $10,000.00. A High Bid Premium of 20% is applied to the amount by which the bid exceeds 40% of the Assessed Value. Bids start at the lien amount ($200.00) and proceed upwards. The amount by which the bid exceeds 40% of the Assessed Value in the above example is $2,000.00 and this amount is subject to the High Bid Premium of 20%.  For determining High Bid Premiums on BidBaltimore.com, if the Assessed Value listed is zero dollars, the High Bid Premium will be calculated based on the greater of the Lien Amount or 40% of the Full Cash Value listed in the Property Details.  If both the Assessed Value and Full Cash Value listed are zero dollars, the High bid Premium will be calculated using the Lien Amount.

23. How often is the web site updated to reflect the current lien values?
The data on https://baltimorecity.marylandtaxsale.com, including the assessed values, lien values, status (whether open or paid), etc., will be updated periodically until the sale date.

In addition, the City reserves the right to update the web site data at any time, including on or after the sale date.

24. How are bidders required to make payment to the City for Tax Lien Certificates awarded as a result of the Tax Liens Certificate Sale?
The only acceptable method of payment is ACH Debit. Bidders will enter their bank account information on the auction web by Friday, May 10th, 2024 at 4:00 PM ET when paying the registration fee. Once the auction is completed, the same account that was used to pay the registration fee will be debited for the total amount of their winning bids, including any applicable High Bid Premiums. No changes can be made to the bank account information once the registration fee has been submitted and no other form of payment will be accepted.
 
25. What is an ACH Debit?
An ACH debit is an electronic funds transfer from your bank account, initiated by the Tax Collector with your prior authorization. For more information on ACH, please visit the NACHA, the Electronic Payments Association at www.nacha.org. Funds must be drawn from a US financial institution. Some types of money market, brokerage, and/or trust accounts cannot accept ACH debits. Please check with your financial institution prior to initiating payment on the web site.

26. Is the $100.00 registration fee subtracted from the amount of liens due?
No. The registration fee is non-refundable and is not subtracted from the amount of the liens.

27. What type of document is issued at the Tax Lien Certificate Sale?
The Tax Lien Certificate is issued 6 months after the Tax Lien Certificate Sale, if the property has not been redeemed.
 
28. What if there are no bids?
If there are no bids for a property, the Tax Lien Certificate is held by the Mayor and City Council. These Tax Sale Certificates are available for assignment at a scheduled assignment sale.The certificates can be assigned for the amount of the lien. After the initial Assignment Sale, the City held Tax Sale Certificates are available for assignment and can be assigned for the amount of the lien plus 12% per annum redemption interest for owner occupied residences and 18% per annum redemption interest for non-owner occupied properties to the date of purchase.
 
29. Can the Tax Lien Certificate be assigned over-the-counter directly from the City?  Can I get a list of these liens? Can I assign them after the sale?
Subsequent to the Tax Lien Certificate Sale and Tax Lien Certificate Assignment Sale, Tax Lien Certificates are assigned on a first come-first served basis and can be assigned over-the-counter directly from the City. They may also be assigned by mail. All certificates are freely assignable.
 
30. What are the Risks with Tax Lien Certificate Sales?
The purchase of a Tax Lien Certificate is a risky investment. Investors are strongly advised to investigate the property they intend to purchase and know exactly what they are buying before bidding at the Tax Lien Certificate Sale. The Collector gives no guarantees and makes no representations regarding property title or the nature of the interest in the property that is listed. The Collector gives no guarantees and makes no representations regarding prompt redemption or return of the lien amount, high bid premium etc.  Some risks include:
 

1. Investment Capital is frozen: The money invested in the Tax Lien Certificate is unavailable for use. From the date of the Tax Lien Certificate Sale until the property is redeemed or until foreclosure is finalized, there is no access to the money invested. Emergency funds should never be used as investment capital, as the funds will be frozen for a time.
2. The property owner may file bankruptcy. In the event the property owner files for protection under the bankruptcy law, the certificate holder is prevented from enforcing the lien until the bankruptcy is released. The bankruptcy court can lower the interest rate and order payments to be made over a period of time.

31. What is an assignment? What is the difference between assignment and Redemption?
An assignment is when an individual or firm has the Tax Lien Certificate transferred to him or her from a previous Tax Lien Certificate Holder for his or her own personal gain with no interest or benefit to the property owner.  Tax Lien Certificate Redemption is a payment received from the homeowner, mortgager, or Title Company or other party who is in privity with the homeowner such as the mortgagor or title company for the entity who holds a valid contract of purchase for the said property or the holder of a recorded instrument such as a judgment etc. The effect of redemption by one of those parties listed above is to shift the liability for the municipal liens from the Tax Lien Certificate Holder to the redeeming party. The property owner then becomes responsible to pay the liens, expenses and redemption interest to the party who has redeemed on behalf of the property owner and the interest of the Tax Lien Certificate Holder is extinguished, and the Tax Lien Certificate becomes void.
 
32. How are Tax Lien Certificates redeemed?
The City's redemption procedure is governed by and in conformance with the Annotated Code of Maryland, Tax Property Article 14-828(3). ATTENTION: Current law as applied by the Baltimore City Collector requires the Tax Lien Certificate Holder to collect from the redeeming party the amount of actual legal expenses or fees. The redeeming party still must pay the City of Baltimore directly for all liens plus interest and any applicable subsequent taxes. A Tax Lien Certificate Holder has no right to possession of the property until a deed is acquired. Pursuant to Annotated Code of Maryland Property Tax-Property 14-828, when the property is redeemed, the person redeeming shall pay to the Collector the following:

1. The total amount of the liens paid at the Tax Lien Certificate Sale including 12% per annum redemption interest for owner occupied residences and 18% redemption  interest for non- owner occupied properties.
2. All current taxes together with any interest and penalties on those taxes (for non-owner occupied properties only).
3. Any actual expenses or fees allowed pursuant to the Annotated Code of Maryland Tax-Property 14-843

PLEASE NOTE THE FOLLOWING REGARDING THE CITY OF BALTIMORES BUSINESS RULES FOR THE REDEMPTION OF TAX LIEN CERTIFICATES:

The City has established the following business rules, governing certain aspects of the Tax Sale and ancillary processes. These rules are consistent with the authority granted to the City under the Annotated Code of Maryland Tax-Property Article 14-817(4) to set the terms of the Tax Sale.
 

1. Timely Notification by Tax Lien Certificate Holder of Legal and Other Expenses:
   • Tax Lien Certificate Holders are required to provide the City with a means of notification, either an e-mail address or facsimile telephone number, where they can be reached to facilitate redemption the Tax Lien Certificate. The address of record must be kept current, with the City receiving timely notification from the Tax Lien Certificate Holder of any change in the manner by which they are to be notified. This information should be initially provided by completing the bidder registration screen on the BidBaltimore.com web site. Any subsequent changes to this information shall be provided to the City as a request to change the Tax Lien Certificate Holder notification address. For e-mail, the request should be sent as an e-mail request to Tammy.Hollie@baltimorecity.gov, or for facsimile notification by faxing the request to the Baltimore City Tax Sale Office at 410-837-6994.
   • The Tax Sale Office will not assess or collect any fees before or after the filing of a complaint to foreclose the rights of redemption. The Tax Lien Certificate Holder must collect any fees and provide a legal fee release to the Tax Sale Office. The release must include the amount of attorney’s fees, the amount of the title search fees, and any other costs must be submitted on legal letterhead stationery. All correspondence in this regard shall be sent to the Tax Sale staff by e-mail or at the following address:

Wolman Municipal Building
200 Holliday Street, Room 1
Baltimore, Maryland 21202

If the Tax Lien Certificate Holder fails to respond to the City's contact in a timely and/or satisfactory manner, the City may, at its sole discretion, elect to complete the redemption on behalf of the party in interest without the inclusion of legal and other allowable fees incurred by the Tax Lien Certificate Holder.

After the City provides notice of redemption to the Tax Lien Certificate Holder, any additional action taken or additional fees or expenses incurred by the Tax Lien Certificate Holder shall be at its own expense.

The redeeming party still must pay the City of Baltimore directly for all liens plus interest and any applicable subsequent taxes.

• Upon filing a complaint to foreclose the rights of redemption, additional fees may be applicable six months for      non-owner-occupied properties and nine months for owner-occupied residential real estate from the date of tax sale or sooner if there is a substantial repair order.

Proof of payment of the fees to the Tax Sale Office must include a Release under affidavit that contains an itemized list of the fees paid by the redeeming party, the address of the property(ies), the date of filing the foreclosure, and the applicable foreclosure case number. If the case number cannot be immediately obtained, proof to the Tax Sale Office must include an affidavit from the attorney stating that a Complaint to Foreclose the Right of Redemption has been filed, the address of the property(ies), the date of filing, and the initial fee associated with the filing.

• The City defines owner-occupied residential property as a property which is coded as H or D by the Maryland State Department of Assessments and Taxation (SDAT) on January 1st of the year before the date of the tax sale.  That coded designation will be published online by the City and shall remain associated with the property for all purposes related to that tax sale, including notices, foreclosure filing dates, dates for adding fees and costs, and redemptions.  After online publishing, it shall remain unchanged for all purposes for that tax sale, regardless of errors or subsequent changes in the coding by SDAT.

 
33. If my Tax Lien Certificate expires before I file foreclosure, do I get my money back?
No. If the Tax Lien Certificate Holder/Assignee has not filed foreclosure within two years from the date of the Tax Lien Sale Certificate, or within ninety (90) days on Bulk Sale Certificates, the Tax Lien Certificate Holder forfeits their investment and no refund is issued.
 
34. What are the procedures for filing a foreclosure and how long does this process take?  Will the City of Baltimore handle the foreclosure process for a fee?  If so, what is the fee?
The Foreclosure procedure is through the Baltimore City Circuit Court and includes obtaining a decree from the Circuit Court for Baltimore City, preparing a deed, and paying all liens that have accrued from the date of the Tax Lien Certificate Sale. The City of Baltimore cannot assist in the foreclosure process. You may want to seek the advice of an attorney.
 
35. After redemption of the Tax Lien Certificate, how does the Tax Lien Certificate Holder receive the money?
When the property is redeemed prior to the issuing of the Tax Sale Certificate, the Tax Lien Certificate holder will automatically receive a refund check from the City of Baltimore for the lien amount, and all applicable interest and costs. If the Tax Lien Certificate has been issued to the Tax Lien Certificate Holder, the Certificate must be returned to the City before the refund is issued.
 
36. What if the Property is not redeemed?
Under the terms of the Tax Lien Certificate Sale, if the property is not redeemed, the Tax Lien Certificate Holder may file a Complaint to Foreclose the Right of Redemption, take title to the property, and may be entitled to recover additional expenses. The time for filing is different for properties with a Substantial Repair Order, owner occupied residences, and non-owner occupied properties.  Foreclosure procedure includes obtaining a decree from the Circuit Court for Baltimore City, preparing a deed, paying all liens that have accrued from the date of the Tax Lien Certificate Sale, and recording the deed in the Land Records for Baltimore City. Once the foreclosure has occurred, the Tax Lien Certificate Holder is also required to pay to the City the Balance of Purchase (the difference between the amount of the liens and the amount of the bid).
 
37. What is the life of a Tax Lien Certificate?
A Tax Lien Certificate has a two-year life span and is void two years from the date of the Certificate unless a Complaint to Foreclose the Right of Redemption is filed in the Circuit Court for Baltimore City, prior to the normal expiration of the Tax Lien Certificate.
 
38. When can the homeowner redeem his/her property out of the Tax Lien Certificate Sale?
Tax Lien Certificate Sale redemption can begin as early as May 30, 2024, and continue until such time that a Circuit Court judge signs a decree foreclosing the right of redemption.
 
39. How can I get a current list of Tax Delinquencies?  Can I be placed on your mailing list?  Is there a charge for this list?
A list of delinquent properties will be available Wednesday, March 13th, 2024, and can be downloaded prior to the Tax Lien Certificate Sale from the website. The City does not maintain a mailing list.
 
40. How can I get a copy of the statutes regarding the Tax Lien Certificate Sale?
The Tax Lien Certificate Sale statutes are in the Maryland Tax-Property Article and are available online at http://mlis.state.md.us/asp/web_statutes.asp. The sections for Tax Lien Certificate Sales are 14-808 through 14-854 inclusive. You can also contact the City’s Legislative Reference at 410-396-4731.
 
41. Can a Tax Lien Certificate be voided?
Yes. Occasionally it may be necessary for the Collector to void a Tax Sale Certificate after award.  In that event, neither the owner nor the City will pay interest, legal fees, costs, or any other charges to the Tax Lien Certificate Holder.