When someone does not pay their taxes, regardless of whether the property is in a Short Sale or not, that property falls into a system whereby the property goes up for sale through the county as a TAX SALE. This happens the second Monday in May in Frederick County. The county needs their money whether it's from you or an investor. If an investor pays the taxes, you will have to pay him back plus interest and I think the interest is over 7%.
Information about properties up for TAX SALE will be posted on April 20, 2009. May 11, 2009 is the sale date.
Often times when someone dies and there are no heirs, a property will go into this system and that is how some investors get rich - by buying property at tax sales. The homeowner or their heirs have 6 months to pay back the person who paid the taxes at the TAX SALE plus interest. Once they pay back whoever bought the property in the tax sale, they then redeem the property into their ownership. If a homeowner or their heir or the lien holder does not pay the taxes, the person paying the taxes then files to take ownership of the property.
When a property is in Short Sale, the lien holder will have staff that keeps their eye out for this and will pay the taxes on the owners behalf to keep it out of a TAX SALE. HOWEVER, sometimes the lien holder drops the ball and does not catch this and it falls into the TAX SALE system. As I said, TAX SALES occur in the spring. Below is the link to Frederick County so you can see what happens. As I said, TAX SALES are held the second Monday in May in Frederick County.
Cathy Chapman, Broker
Signature Home Sales, LLC