Little Orleans, Maryland Delinquent Tax Sale Property


The collection of real estate taxes for properties located in Little Orleans Maryland is a major priority for the Allegany County Maryland Tax Collector. Real estate taxes fund local services such as public education, police protection and medical services.

Delinquent property taxes create a serious cash-flow problem for Allegany County Maryland. If Allegany County Maryland is unable to collect property taxes, they are also unable to fund important government services like police protection, public schooling, and emergency medical services.

Without the tax revenue generated from real estate located in Little Orleans Maryland, Allegany County Maryland would literally go bankrupt.

To solve this cash-flow problem, Allegany County Maryland allows investors to come in and pay off a portion of these delinquent property taxes.

In return, Allegany County Maryland gives investors Maryland tax lien certificates. A tax lien certificate is a document indicating ownership of a real estate tax lien. A tax lien is simply a claim for taxes.

A Maryland tax lien certificate transfers all the rights that come with being the owner of the real estate tax lien from Allegany County Maryland to the investor.

When purchasers buy tax lien certificates in Maryland, they are paying someone else's delinquent property taxes. What's more, Maryland actually gives purchasers the right to receive all of the tax money due - including fees, interest, and/or penalties.

To encourage delinquent owners to pay their past-due property taxes, the state of Maryland charges up to 6% to 24% per annum on the amount paid to satisfy the delinquent taxes, which is passed directly to the tax lien certificate purchaser.

The sale of tax lien certificates is a solution to a complex problem Allegany County Maryland recovers lost revenue needed to fund local services, the property owner gets more time to satisfy their delinquent property tax bill and the purchaser receives a tax lien certificate which is real estate secured and offers up to 6% to 24% per annum mandated by Maryland law.

For "risk-sensitive" investors Maryland tax lien certificates are an attractive alternative to traditional investments choices. With tax lien certificates, purchasers are investing their money with Allegany County Maryland and when the Allegany County Maryland Tax Collector collects the past due taxes, they send purchasers a check, returning what they paid to purchase the Maryland tax lien certificate plus applicable penalties, interest, and/or late fees.

Maryland tax lien certificates are attractive in several ways. First, the rise and fall of interest rates has no effect on Maryland tax lien certificates. Unlike the stock market, interest rates on Maryland tax lien certificates are mandated by Maryland law.

In addition, Maryland tax lien certificates are secured by real estate. So if purchasers do not receive what they paid to purchase the Maryland tax lien certificate plus interest and/or penalties within the law mandated redemption period, the purchaser acquires title to the property free and clear of all liens created prior to the sale.

So in review, there are generally two outcomes with the purchase of a tax lien certificate; the purchaser will either receive what was paid to satisfy the delinquent property taxes PLUS up to 6% to 24% per annum, or Allegany County Maryland has the legal right to transfer them the property - often with no mortgage!

Once they own the property they can do whatever they like; sell it, rent it for monthly cash-flow, even move in (often with no mortgage payment).

As with any investment, there is always an element of risk. Even if the tax sale process is written into Maryland law, mandated by Maryland law, and regulated by Maryland law, there is still a chance of purchasers incurring substantial loss. It is recommended that anyone considering buying a tax lien or tax foreclosure property consult properly licensed legal and accounting professionals.

Join the Little Orleans Maryland Delinquent Tax Sale Discussion.

Below you will find a collection of the latest user questions and comments relating to Tax Lien Certificates on tax-delinquent property located in Little Orleans Maryland.

Learn about Tax Lien Certificates in other counties or municipalities located in Maryland.

The following is a list of counties located in the state of Maryland. Tax Lien Certificates for properties located in the following counties are sold at Maryland county tax sales.

Learn more about each county's individual tax sale process by clicking on the name of the county for which you are interested from the list below: