Tax liens in Maryland - overbid payment
I am new to buying tax liens in MD. If you won the tax lien certificate from the auction (with an overbid higher than the actual tax lien amount) and you wanted to foreclose to own the property after the redemption period expired. Do you have to pay the overbid amount? If so, does it have to be cash? Can you apply for a bank loan/mortgage for that amount? I know some of the bids can be in the hundreds of thousands so that's why I'm asking.
Any advice would be helpful. Thanks!
Most Popular Reply
@Bennie Johnson in Maryland the balance of the bid is not paid until you record your new deed after a foreclosure.
If the mortgage foreclosure is done correctly then a title company should insure it, which means some lenders will lend on it. Not all title companies will do this. We use a small group of title companies regularly who are happy to insure our tax sale properties.