The overage (bid above lien) stays on credit — only paid if you foreclose. The high-bid premium (if triggered) is paid today and returned when the lien redeems or you foreclose.
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Free Resource
Maryland Foreclosure Guide
The complete 8-step guide to foreclosing the right of redemption in Maryland — with direct links to the relevant statutes, key deadline tables, and attorney resources. Enter your email to access it free.
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Legal Reference
Maryland Foreclosure Guide
Always work with a licensed Maryland real estate attorney before filing any foreclosure complaint. This guide is for educational reference only.
Step-by-Step Process
1
Confirm Eligibility
At least 6 months must have passed since the tax sale (9 months in Baltimore City for owner-occupied residential). Verify the two-year deadline has not expired — missing it forfeits your premium and your right to foreclose permanently.
Identify every party with a legal interest in the property — owner(s), mortgage holders, ground rent owners, judgment lien holders, IRS federal tax liens. All must receive proper notice or the foreclosure can be successfully challenged.
Foreclosure of the right of redemption is a Circuit Court proceeding. You need an attorney experienced specifically in Maryland tax sale law. Once you file, attorney fees above $500 become recoverable from the owner.
Your attorney files in the Circuit Court of the county where the property is located. Defendants must include the record owner, ground rent owner, all mortgage holders, the State of Maryland, and the County.
All defendants must be served per Maryland law — personal service, certified mail, and newspaper publication for parties who cannot be located. Improper service can void the entire proceeding.
6
Obtain the Court Order
If uncontested, the Circuit Court enters a final judgment barring the right of redemption. The owner may still redeem right up until the judge signs the order. Once entered, redemption rights are permanently extinguished.
7
Pay Overage Balance and Record Deed
Pay the county the remaining overage — the difference between your total bid and what you paid at auction. The collector executes the deed once the Clerk provides a certified copy of the judgment. Record the deed in county land records.
Before selling or financing the property, obtain an owner's title insurance policy. Tax sale title is generally insurable but a policy protects against procedural defects that may surface later. Most buyers and lenders will require it.
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Companion to The Maryland Tax Lien Investor's Guide — 2025 Edition. All data is encrypted and synced to your account across all devices. For educational and organizational purposes only — not legal or financial advice. Consult a licensed Maryland attorney before taking any legal action.