Does the property owner ever pay the lien holder directly

Question

I invest in tax liens in my state (Maryland) but have no experience in other states. In MD, if the property owner wants to redeem they always pay the county or city, and then the county or city pays the lien holder. Is that true in all states? Are there some states where the property owner redeems by paying the lien holder directly?

Just something that came up in a conversation with a friend and I was curious how other states worked.

Bruce Lynn · Answer

In Texas I've only had 2 redeem..... one paid me directly....I controlled the transaction.   I had the deed drawn, met him at the courthouse and had him give me cashiers check at the clerks office and I handed him a copy of the deed and handed it to the clerk to record.

The other one hired a lawyer to represent him.  They were on the last day of the redemption period.  They paid at their county tax office, which transferred it to the tax assessor where the property was, and then that assessor had me write them a request for the money.  In that case I had a deed ready to go, but they drew up a quit claim deed, which I did not want to sign, because it did not address all my concerns, and is not typically used here in Texas.   I think that was potentially a mistake on their part, but that's up to them, not my concern.   That reminds me that I should go back and look at what kind of paperwork they filed to get it back in their name.  I'd guess that is potentially a problem if they ever try to sell it, but total guess.

In my state (Texas) no one really seems to know a great way to redeem, transfer, write a redeemable deed, etc.   I think it just happens so rarely, people have never come across it much.  I don't think it is addressed in the statues....just that it is redeemable and what the stipulations are and what penalties are due.

Adam Walter · Answer

In Ohio tax liens are only sold to large institutional investors in million dollar bundles. The property owner can set up a payment plan with the lien holder to pay it off.

Ronald Rohde · Answer

It can go either way, I've escrowed redemptions for my clients too.

John Underwood · Answer

It's handled that way in SC.

Does the property owner ever pay the lien holder directly

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