New investor in Tax Liens - State of MD.

[Chinmay J.]

I am planning to invest in Tax Liens in State of Maryland in 2017. So I am trying to do my homework beforehand so I would be prepared for next year.  Being a novice in this area, some of these questions are probably too basic for some.. 

From reading on the county website(s), I know the basics of this but there are some logistical questions that need to be answered. 

Maryland allows redemption period of 6 months for the homeowner to pay his taxes and reclaim his property. So if I am supposed to be receiving payments for 6 months, how is that process handled? Does the county provide with the owner where to mail the payment check? Or do I have to contact the owner? I plan to have a P.O. Box where they can send payments, so they don't have direct and easy access to my home address. 

Is there any information on what percentage of tax liens finally end up getting foreclosed? I could not find this anywhere on the county website. So do the players in this market have any idea? I just need to know to see what kind of success rate I will get on average. 

If there is an existing mortgage on the property, is it possible to strike a deal with the bank/lender that owns the mortgage note without actually foreclosing the property? 

How can it be ensured that the properties you are bidding on have a marketable title? Does a Title Company, someone who is working for me, has to be involved from the get-go?

[Ned Carey]

@Chinmay J. the owner or anyone in the chain of title can redeem the property up until the day a judge declares the foreclosure final. This is much more than 6 months. 

You do not receive anything until the owner redeems. The owner pays the county (or city) and the county or city sends you a check.

Nationwide about 3-4% get foreclosed would be my estimation. it is probably lower than that in Howard or Montgomery county. It is probably higher than that in Baltimore city. My own experience is I foreclose on about 15% of the properties in the city. That has a lot to do with the properties I target and the risk I take.

It is not likely a bank will work with you, especially if it is a large national or regional bank. They have way to many properties to deal with them on a individual "Special Case" basis.

It doesn't matter if the current owner of the property has marketable title. The tax sale clears up the title. It wipes out mortgages, liens and judgements against the property. (with perhaps an ultra rare exception). If your foreclosure attorney is good, you should have clear title and be able to get title insurance. However i will warn you many title companies will  not insure a tax sale. you have to deal with a title company that has a clue what they are doing.

I never have anyone do a full title workup for me before the sale. I do as part of my due diligence check some websites for some properties on a  case by case basis.