FAQ's for Bidders
How often does Howard County hold tax sales?
What are the date, time and location of the Howard County Tax Sale?
Does Howard County allow bidders to participate in the auction via mail, telephone or fax?
How can a list of tax sale properties be obtained and what is the cost?
Are the properties not bid upon at the tax sale available for sale over the counter?
What are the registration requirements?
Is there a fee for registration?
Can registration be done via mail?
What is the bidding process?
What happens if I don’t bid on anything?
If I am the successful bidder on a property, do I have to pay the bid amount at the end of the auction?
What is a High Bid Premium?
If I am the successful bidder on a property, do I take ownership of that property?
How long is the tax lien valid?
What interest rate is paid on the lien upon redemption?
How long does the owner have to redeem the property?
What must the owner do in order to redeem the property from tax sale?
What if the owner does not redeem the property?
Does Howard County initiate or handle any foreclosure proceedings?
What will happen if a bidder does not file a civil action case within two years?
How often does Howard County hold tax sales?
Howard County holds one tax sale per year.
What are the date, time and location of the Howard County Tax Sale?
The date of the tax sale per Howard County Code section 20.140: “The tax sale shall be held no earlier than the third Wednesday of April, and no later than the last Wednesday of August each year." For 2008, the tax sale will be held at 10:00 a.m. on Wednesday, May 28, 2008 in the Banneker Room of the George Howard Building. The address is 3430 Court House Drive, Ellicott City, MD 21043 (Map and Directions). Call 410-313-2060 if additional information is needed.
Does Howard County allow bidders to participate in the auction via mail, telephone or fax?
No. All potential bidders are required to register and submit proof of identification, in person, in order to obtain a bid card.
How can a list of tax sale properties be obtained and what is the cost?
Howard County publishes a list of properties intended to be auctioned, in four consecutive weekly issues of the Howard County Times, four weeks prior to the actual tax sale. Copies of the publication must be obtained directly from the publisher, Patuxent Publishing. Concurrently, a list is also made available via the following web site address: www.howardcountymd.gov/DOF/DOFDocs/taxsale08.xls. The web site listing must be downloaded as an Excel 2000 spreadsheet. No other lists are available.
Are the properties not bid upon at the tax sale available for sale over the counter?
No. Any property not sold or bid are purchased by the County. No property will be sold at any other time than on the day of tax sale.
What are the registration requirements?
Registration will begin promptly at 8:30 a.m. and end at 10:00 a.m. on Tax Sale day. No registrations will be accepted after the auction starts. All potential bidders will be required to provide name, address, telephone number, social security number or federal identification number, e-mail address and signature. In addition, bidders will need to complete form W-9 (Request for Taxpayer Identification Number and Certification) and the Collector will provide tax sale purchasers with IRS form 1099 to report interest as required by law.
Is there a fee for registration?
Yes. In order to obtain a pre-numbered bid card, potential bidders must pay a one thousand dollar ($1,000) deposit via certified funds such as a cashiers check, certified check, cash or money order.
Can registration be done via mail?
Yes, pre-registration can be done via mail beginning three weeks prior to the tax sale date. If you wish to pre-register, you may download, print and review the Terms of the 2008 Tax Sale and a W-9 (Request for Taxpayer Identification Number and Certification). After reviewing the Terms of the 2008 Tax Sale, complete the last page in its entirety acknowledging your agreement with the aforementioned terms. All completed acknowledgement pages and W-9 forms must contain original signatures and be returned to the Howard County Office of Finance with the $1,000 certified deposit no later than May 16, 2008. Incomplete forms will not be processed and/or returned. Contact the Tax Sale Desk, 3430 Court House Drive, Ellicott City, MD 21043 Phone: 410-313-3196 for questions or concerns.
The initial bid price will be no less than the total amount due for taxes and other charges, together with interest, penalties and expenses of sale. The auctioneer will begin with the first property and proceed in alphabetical order stating the amount due. The auctioneer will set any and all incremental bidding levels and when the auctioneer says, “Sold”, the sale of that property is complete. The auctioneer’s decision is final.
What happens if I don’t bid on anything?
If a bidder does not bid on any property his/her deposit will be refunded upon return of the bid card.
The amount due will be the amount of back taxes, interest and costs, less the $1,000 deposit, plus a high-bid premium, if applicable, and will be due by 2:00 p.m. the following business day. Personal checks imprinted with name, address, and telephone number are accepted.
If I am the successful bidder on a property, do I take ownership of that property?
No. The successful bidder will hold a tax lien against the property and be given a tax sale certificate. However, until redeemed, the lien will be considered the foremost financial obligation of the property.
How long is the tax lien valid?
The tax lien certificate is valid for two years from the date of the certificate.
What interest rate is paid on the lien upon redemption?
The current interest rate paid by Howard County on tax sale property is eighteen percent (18%) annually. The interest amount will be calculated at a daily rate from the date of sale to the date of redemption.
How long does the owner have to redeem the property?
According to the Annotated Code of Maryland, § 14-827: The owner or other person that has an estate or interest in the property sold by the collector may redeem the property at any time up until the right of redemption has been finally barred by a decree of foreclosure.
What must the owner do in order to redeem the property from tax sale?
In order to redeem the property from tax sale, the owner must pay to the County the total amount paid at the tax sale on his or her behalf, together with interest and penalties and any taxes that accrue after the tax sale date. In addition, if the redemption occurs after four months from the date of sale, the owner must first reimburse the holder of the certificate for any expenses and attorney’s fees incurred. The certificate holder will then provide the owner with a letter of release, which will allow the owner to redeem the property from tax sale. If the owner redeems within the first four months from the tax sale date, the owner is not liable for any bidder expenses and a letter of release is not necessary.
What if the owner does not redeem the property?
If an owner fails to redeem his property from tax sale, the bidder may file a civil action case in court to foreclose the owner’s right of redemption. The action to foreclose the owner’s right of redemption must be filed no less than six months from the date of sale and no more than two years from the date of the certificate. If judgment is granted in favor of the bidder, the bidder may gain full title to the property by paying the balance of their bid if any, and any taxes that accrue after the date of sale, after which a deed can be drawn.
Does Howard County initiate or handle any foreclosure proceedings?
No. Howard County may not provide legal counsel or assistance to either party in a civil action case. Interested parties should seek professional advice as deemed necessary.
What will happen if a bidder does not file a civil action case within two years?
If the owner does not redeem and no civil action case is filed within two years from the date of the certificate of sale, the certificate of sale is void and the bidder loses all rights to the property and subsequently to any monetary reimbursement. The property will be sold again.
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